Instacart Slashes Delivery Fees to Compete With Amazon

Instacart has cut its delivery fees by a third.

Instacart has cut its delivery fees by a third, making the service a more cost-effective option than Amazon on Whole Foods delivery through its Prime Now service.

Business Insider reports that the home delivery service has cuts its annual Instacart Express membership fee from $149 to $99, and discontinued its 5% service fee. In addition, non-express delivery charges have been reduced from $5.99 to $3.99.

With the changes to its fee structure Instacart is now a more affordable delivery option than Amazon for Whole Foods delivery.

"We've made grocery delivery more affordable,” Instacart said in an e-mail to customers announcing the change in fees. “Let our personal shoppers take care of your grocery shopping while you save an hour or two."

Amazon's Prime subscription program includes two-hour delivery of groceries from Whole Foods for free, and ultra-fast delivery within one hour for $7.99 on orders over $35. An Amazon Prime membership costs $119 annually. Instacart is a better value for strictly Whole Foods delivery, but when you factor in all of the other benefits of Amazon Prime ― free delivery on select purchases, video streaming, in-store discounts at Whole Foods, etc. ― Amazon still holds the edge in total bang for the buck.

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