Instacart logo
The greater Madison area now has another option for online grocery ordering. Instacart, a San Francisco-based company that touts same-day delivery, launched locally on Aug. 15 in partnership with Whole Foods, Costco, CVS Pharmacy, Metro Market and Pick ‘n Save.
“We’re really excited to bring Instacart to Madison,” says Scott Holloway, general manager for the Midwest region. “[We offer] a really good grocery mix and a great opportunity to bring in jobs [for] personal shoppers.”
Customers use the Instacart website or mobile app to select products to fill their virtual cart and choose when they would like their order delivered. The request is then fulfilled by a personal shopper who also handles delivery. Shoppers are independent contractors who make a commission on the sale and can also receive tips from customers. Holloway expects to hire 50 to 100 personal shoppers to serve the Madison area and says it’s likely that number will grow as the service catches on. “For context, we have thousands in Chicago,” he says.
The Instacart delivery fee starts at $5.99 and varies depending on the size of the order and how soon customers want it delivered, Holloway says. Delivery fees can also increase during times of high demand. Instacart Express, an annual membership service, offers free delivery on orders of $35 or more. The company is offering a free two-week trial membership to new members in the Madison area. In addition, customers can use the coupon code “HIMADISON” for $20 off an order of $35 or more plus free delivery through Oct. 7. Another perk: Instacart lets customers order items in bulk from Costco without a membership to the store. However, not all items that are available at Costco will be eligible for Instacart ordering and delivery.
There are already a number of options for grocery delivery in Madison. Local stores like Hy-Vee and Metcalfe’s offer the service. Hy-Vee says that most orders placed by 10 a.m. can be delivered the same day; orders $100 and over are free. Metcalfe’s charges $5.95 for home delivery and most orders will make it to your home later the same day or by the following day, depending on how many other people are using the service. The Madison-based startup Grocerkey does ordering and delivery for Woodman’s. But Holloway says the speed of Instacart’s delivery makes it stand out among its competitors. “We’re the only player who can deliver from multiple stores within one hour,” he says.
Grocerkey CEO Jeremy Neren isn’t worried about competition from Instacart. “We’ve already run up against them in the Milwaukee area, and we’ve been doing very, very well,” he says. “We see this as a rising tide lifting all boats.”
Grocerkey — which currently offers delivery and pickup in Madison, Milwaukee, Janesville and Kenosha, and will soon launch in Green Bay — is on pace to expand its online ordering and delivery to all 16 Woodman’s stores by early next year and is working with a handful of other retailers throughout the country to help implement online ordering technology.
“We’re excited about what we’re doing, and we welcome the competition,” Neren says. “Competition builds awareness.”
