@@homeofsports3295 No, not magically. Rather, due to the removal of taxes, tariffs and other barriers to trade that result in inflated prices of imported products
It's great that you can expect the same price on do it yourselves vs have someone else shop for you, use their car and gas. Even still the drivers are not paid enough. The drivers get ripped off the most.
I am sure people would happily pay the markup if it is clearly conveyed in the beginning. But when it is hidden or assumed, that is the issue. As for the someone else is doing it for you argument- that is the whole idea of having it "delivered to you" app is about. Using gas, someone else's car, well someone signed up for it and that is why the delivery fees and service fees are for. Lastly, drivers are getting "ripped off" part, blame the freaking company and make them bring the change. Stop blaming it on the consumers that they don't tip enough. Its a job, a freaking job that one knows beforehand what it is about and like. Stop guilt-tripping the consumers.
Why are customers SHOCKED to learn grocery & restaurant delivery through 3rd party apps is a expensive luxury . Amazon fresh , Walmart & in house supermarket delivery are the only semi affordable options
They aren't. They're shocked to learn that not all the fees are included in a transparent manner. Even the title of the video says this so I can't blame you for "not watching the video." This, plus the number of upvotes you have, plus the relative newness of your account tells me you are a corporate shill account.
@@mokahless It's two seperate things though. The fees are transparent - they are on the checkout page. The price difference is the real markup since Instacart keeps the difference.
yeah, if this was the official store app I would be a little annoyed that the prices are not the same. However dealing with a third party app ofc, the prices are not going to be as upto date.
And instacart is cutting the pay for Pickers and drivers to less than half in a single year just like uber and lyft , and Marketplace don't even consider that
It's IC's job to pay their employees. Putting the blame on the disabled customers living on $1000/month that can choose between using a delivery app and quite literally dying of starvation isn't constructive, because being forced by companies like IC to survive on tips without benefits is the problem, not individual customers being mean-spirited
@@meowmiaumiauw it's nothing against anyone . But I personally won't bother why would I if you make nothing between time and km, and gas a batch can be as low as $7 pay for a hour or more of a shoppers time gas km etc. It's quite literally not worth shopping with no tips. It is instacarts job but they don't care.
@@meowmiaumiauw What did you do BEFORE you found instacart? Did you starve? It looks like you survived. Tip your shoppers well. They are not even making minimum wage!
@@JJ-hw9dt The problem is like with Uber, IC lets people tip-bait. They'd have a lot more drivers accepting orders if they stopped that practice like DD, and GH. Plus, they're putting customers at risk letting them do that to people that know where they live.
They should talk to the shoppers in how little they are paid. IC pays their shopper so little and often times have to shop for 2 to 3 people at the same time.
In my opinion, this is a half-assed story. There is so much more to investigate and tie together. At no point, were any IC shoppers involved in the story. If CBC wanted a truer picture, they should have tried to get shopper involved and do a tag-along with them to get the whole picture. I have done some comparisons between IC and actual grocery bills and they were much closer than this video intimates. A missed opportunity for a more detailed story.
Instacart advertises pricing on the app which may not reflect the actual in-store price at the time the shopper purchases it with the Instacart card. Instacart then charges the customer it's listed price and they pocket the difference. I am confident this is what is happening. I would start asking the shopper for the receipt... It would confirm a lot.
@@PhrostyGaming it is specifically forbidden by Instacart to give the customer the receipt. Shoppers can and have been deactivated by IC. It is in our Terms
The point of this story is not about how much markup instacart is making, it’s about dishonest practice. Nobody is saying instacart should not make money, but they need to clarify why those hidden markups are not reflected in the itemized receipt such as service fees. If instacart’s business model is to make money from markups rather than service, they are just another reseller of retail products. This is borderline misbranding.
It’s not hidden though. It’s clearly written for all customers to read BEFORE they place their order. But let’s talk about how terrible they pay their employees…. That makes more sense. $7 for 100-200’ items when instacart is making a ton off its customers!
Not true just yesterday I shopped a $63 order for only 30 items been doing it 2 years so only took me 10 minutes to shop and 10 to deliver so you tell me what job in the world pays 63$ for not even 30 min of work lol?
They can pay these guys that much bc these people are choosing to work for them. Workers don't have leverage bc they just don't have the skills to get better jobs. You can thank unions and strict labor laws causing jobs to go overseas.
How ridiculous, people actually think it should cost the same to have someone do your shopping and deliver it. Like somebody is going to do all your shopping and deliver it out of the goodness of their heart. Good luck.
No, people understand that there are fees/taxes/tips to use the service. The problem people have, if you watched the full video, is that the product prices are different. There is no reason why X item should be priced regularly for $5.00 in store, when it costs $7.00 through Instacart, when the Instacart shoppers are getting it from the same store.
The only fingers in the cookie jar are these apps. Costco is paid the same for an Instacart order as they would be if you went into the store, for example.
I could have told you that Instacart is more expensive without all the extra work. Everyone knows they mark everything up. I see prices from $0.40 to $3 per item, markup. But you're paying for the convenience. They're the only place (at least in Southern California) that will accept an order with only a 2 hour advance notice.
I believe you can pay extra to do a short notice order for walmart as well. Costs around $15 but I think you get it within 2 hrs as well. Might be a little off with those numbers though.
I disagree…getting your groceries delivered is a luxury. They can charge whatever they want. If they want to be more equitable maybe they can offer reduced fees for people using food stamps or seniors.
No, everyone doesn't know. Stop trying to brush this off like some corporate shill. The issue is the lack of transparency with all the fees. They can charge whatever they want but it's scummy to mark up items themselves. The simple fact that stores are saying instacart keeps the markup but instacart is hinting that the stores keep the markup is sus.
the difference is, you're paying more for the item itself. you've already paid for the extra convenience fees. you shouldn't have to pay more on the goods themselves.
i hope they also show how little they pay their shoppers. like $7 (no tip) for shopping and delivering sometimes over 50 items which takes more than an hr
I usually have a simple 20 item order I tip 8 dollars as I am on a set income. I would hope they can accomplish my order in about 30 minutes and total pay is 15 dollars. Instacart the company needs to increase base pay for shoppers to 10 dollars. Then my tip would make it 18. It's a shame a 35 billion company does not support its shoppers and preys on ppl who are disabled usually earning the least to pay shoppers wages.
Because people don't realize we are not doing this for free . Pay up or get it yourself. People do not want to pay people what they deserve. But Instacart does not pay us none of that 7.00 is it the tip you leave is almost all we get now.
Instacart is a business, their shoppers don't work for free. What do you expect? You can always do your own shopping if you don't like paying for convenience.
Obviously u don't know what u are talking about ? Their shoppers are also paid by customer as delivery fee and there is another fee , so customers paying for shoppers and delivery separately and those mark up is for Instacart plus a percentage fee from the store too. Their shoppers are paid per delivery. They are not their employees.
@@sunmoon-dm1ut It's Obvious that you don't know what you are talking about. Instacart Shoppers are contract employees. They receive zero benefits, pay for their own gas and insurance, and only can charge expenses on their IRS Tax Return. Once a week they receive payment from Instacart, this includes any tips. They are not paid directly by customers at all. You as a customer are paying for convenience. Shopping & Delivery to save you time is a convenience. No, It's not Free. If you don't like it, do your own shopping.
I'm glad the disabled were mentioned, though surprised that most people seem not to care. People feel it's sensible to criticize severely disabled people who can't physically go grocery shopping for their inadequate tips, but they don't seem to care that the money from these various markups isn't used to pay IC shoppers or provide benefits. It's a sad state of affairs
I’d also like to add you guys never once said a thing about the people picking these orders. Without us. And others willing to deliver your groceries. This wouldn’t even be possible
No one reads the fine print, I figured there would be a markup but that seems excessive. Especially, considering most ppl that rely on those apps might not make alot of money.
I've been an instacart Shopper for a year-and-a-half I am no longer with the company I was fired or deactivated as they call it I have seen this many times with the company that the prices they charge for items are higher than the store prices they tell us not to give the customer the store receipt as the customer will get an electronic receipt I think the big reason for this is they don't want the customer to see what was actually paid for however it is a service and so they are making their money with fees and markups its Retail 101 unfortunately but as a shopper we are forced to work for tips with the low pay the instacart gives Shoppers your incentive eyes to upsell and replace items that are unavailable with more expensive ones because it increases your tip and you make more money it's a pretty shady company in the end of the day and I'm glad I don't work for them anymore
You're paying extra for the shopping being done for you. Its not free. Has anyone actually thought about the driver doing the shopping for you? We use our personal vehicles and our own gas to get around town. For $3 to $12 per run. That usually is around 10 miles long. I personally dont think you're being ripped off. The prices aren't that off from what I've seen as a shopper.
They charge their fees for that. Hiding extra fees in the product's price is borderline scamming. It also makes it super non-transparent. If there are 2 services, and I want to see which one is cheaper, I can't just compare their fees, I have to fill the entire cart with my shopping list on every app, then see which one was cheaper.
@@shane250 WRONG!!! Instacart is a business. Their shoppers don't work for free, the company needs to return a profit. Tell us how you work for free and your company doesn't even try to turn a profit.
@@shane250 a $3-5 fee is not enough to pay someone to go do your personal grocery shopping and deliver it to your house. Only some stores markup items, some do not. It's all very clearly listed on the Instacart app. This is literally how every business that sells anything operates. Do you think Walmart is selling you that steak for what they paid for it? Nobody says gas stations are "scamming" people when they charge $3.29 for a candy bar you can get somewhere else for $1.50.
@@kpstl26 I'm not saying "keep the fee at $2-$3". I'm saying "increase it to a point that makes financial sense, and let me see how much extra I pay vs going to the store". If I can't easily compare, and the difference is buried in some of the items...That's borderline scamming!
What's awesome about this is that the excess you are paying does not go to the shoppers/drivers. Our pay has gone down. In fact, if your order gets stacked with another, meaning that the shopper is shopping for you and another customer at the same time, both are paying a delivery fee and the shopper only gets part of one of those fees, not both. Also, how is it news that you are going to pay more for a luxury service? Also, Canadians pay crazy amounts for groceries.
For disabled Canadians this is a lifeline not a luxury service. If you a shopper Lose the attitude most of your customers fall in that demographic. Place your grievance where it belongs with the 35 billion dollar company.
The best thing they should do is refund the difference from final sale price or give people the option to give the difference to the driver as an extra tip.
That's partially true, but it's actually the restaurants that set the price. Swiss Chalet even marks up the price on some items even on their own delivery website (chicken wings).
And that isn’t the point. No one is saying that there shouldn’t be a premium for using the service but just that in terms of the actual product the prices should be the same. If it’s true that Instacart is keeping the markup from groceries I guarantee individual shoppers aren’t seeing any of that extra profit.
Not the point. If the company factored those costs into the fees, people would be completely fine with that. Hiding those fees by marking up products is not a good way to do business. It's a pretty dirty way to do business if you ask me. I am fine with supporting the delivery person, and paying a bit extra for that. But I want to know exactly how much extra I'm paying.
I lived in Italy and the local supermarket chains all had grocery delivery services. But they would offer discounted or free shipping for Seniors and Disabled. And in store pricing and discounts/sales on products.
Rich people problems lol... She doesn't necessarily have a budget and just gets what she wants without caring about the price, then complains about it. Anyone with a budget or common sense knows how much the items they typically purchase usually cost, and would notice because they're paying attention and not just randomly adding things to their cart. Must be nice!
@@phoreal22 Only valid argument in this video was for disabled people/old people who would actually benefit from a service similar to this. Idk if their are any alternatives or subsidies for them. Aside from that they can charge however much they want.
She clearly states there is an opportunity cost to shopping for groceries. He also clearly states that the additional cost isn't an issue, but it should not be hidden. You people have a comprehension level of a 5 year old.
Don't feel that horrible for her tipping 5% on a $269 order. 🙄🙄 Treatment of shoppers by IC and customers is what they should actually be investigating.
I know my prices and very early in the pandemic I used this service and happily paid the service and delivery fees. But on my next attempt I immediately noticed the increase in prices. So since then I order direct and do curb side pickup. Not quite as convenient but well worth the savings!! Side bonus (especially at Walmart) when they don’t have a specific item and you have agreed to a substitution, it’s most often an upgrade either in brand or size but you are only charged the price of the product ordered. (The only time this didn’t excite me was when I got 8 kg of flour instead of the 2 kg I ordered ...lol) I mainly use Walmart and superstore and occasionally NoFrills. I have no major complaints about the other two but overall prefer Walmart as the easiest and quickest.
I agree. Using a grocery shopping and delivery service run by a for-profit second company, of course they mark things up. Being smart and using direct order and curbside is a good alternative.
I use insta sparingly. One of the drivers left the store receipt and guys, I literally paid almost double the actual cost. Shocked was an understatement.
I was a shopper and almost every item is marked up. And then for a order of 50 items a shopper is lucky to make 9$ and probably going to get tip baited
If the retailers are setting the price, the retailers still need to pay fees to instacart, it makes complete sense that the grocery stores raise the price to neutralize the fees so that the grocery stores are not selling these products at a loss, and the delivery drivers can also make some money. Its not like it should be free to order delivery directly to your home.
It's the same on apps like SkipTheDishes - because the restaurant takes a hit on fees to the delivery company, prices are marked up higher than in at the restaurant itself.
There are almost no mark ups a Walmart, fyi, and the markups are clearly stated when you select your store and click on “view pricing policy” at the top. Also, please tip your shopper. The real controversy is how low we are paid!
Tips are part now of the batches but are still not adequate for the task. The other side of the coin is there's a lot of orders in a single batch for a truly low amount of money
Instacart prices are the same as instore prices at Walmart. Many other stores mark up items 10% and the customer pays regular price on sale items. So I will only use instacart for Wal-Mart.
@@Tiger-zo2gn Did you watch the entire video? The stores do not set the prices on Instacart! Instacart the company keeps the difference between in-store prices and what they charge.
@@hmacklemore2226 this is false. Each retailer has a unique agreement with Instacart and sets their prices and decides whether to have markups or honor in store prices. Any markups are split between Instacart and that retailer. Instacart charges retailers to use their platform, many use markups as the way to pay this fee.
Thanks for doing this! Would be very interested to see how the Instacart shoppers are compensated. Would be great to force companies like Instacart to operate with transparency and integrity.
I mean this is kinda obvious tho. Theres no way the food can be driven and handpicked with someone being payed to do that on the low delivery and service fees alone its not enough to pay the costs plus make some profit. Id just wish they were upfront with higher visible fees but at least u see what u are paying rather than hiding them with inflated prices hoping u dont notice. Doing it this way is just dishonest plain and simple
Of course you're getting ripped off. It's the same as uber or doordash. If you don't want to get ripped off, make a list and go get groceries yourself.
I work delivery driver with instacart and they always asking me don’t give the customers the receipt, but CBC forgot about drivers and how much money we earn
As a delivery driver if I have 5 stars review which is no way because customer always mad because 1- they spent too much extra money 2- they are not only in one order so the driver has three orders in the same time (instacart do that to make worth it for the driver and because some customer doesn’t leave tip ) 3- not all items showing in the app available in the store “5 to 6 items in one order and up”. So I’ll make 200$ in 10 hours but if I don’t have 5 stars I’ll make 100$ in 8 hours
Should the government do something for this company because they are using the new comers emigrants , because at the end of the year when they are ready for filing the tax return they don’t have money to pay
Why the title? Instacart it really convenient and it saves you a ton of time. Edit: They also tell you and have a disclaimer on the all that certain retailers mark up the items, it's not Instacart. They do however use this mark-up to pay Instacart.
I realized that as well. The markup was always there. Some of the costs go to insuring the drivers for liability and yes , most of it goes to the company.
Mark-ups are necessary to pay the drivers and running costs of the company. What many do not realize is that it takes between 1-3 hours for a driver to go to the store, pick, checkout, pack and deliver the order. Someone has to pay for that. Otherwise, instacart would have incorporate those cost into the fees which would make them unattractive compared to Cornershop
I have tried Instacart but stopped due to the excessive mark-ups. If you do an online, side-by-side comparison on the same items, it is easy to see. As a result. we only shop with grocery stores that offer curbside pick-up.
Having groceries and fast food delivered is a luxury in this day and age. Beforehand, it didn't matter who you were, somehow, some way you'd need to get your own groceries unless you had a family member or friend do it. The company however needs to compensate drivers better but I guess gig jobs like this aren't supposed to be lifelong careers.
There is a difference between wants and needs. For people who cannot or have difficulty buying groceries in person (like seniors or people with disabilities or health conditions), this service fulfills their need but it is very expensive (and I feel for them as they have limited options). But for other people, no matter how busy, this service fulfills a want because you have other options but you are willing to pay more to save yourself time. And these companies know that. In the end, the more companies involved, the more people have to get paid. And if I am a Costco member, I know that if I order from Costco online I pay more than if I drive to their warehouse to buy the same product so if you are using Instacart, you must not have a Costco membership so why should you pay the same price if you don’t pay for a membership and drive to the warehouse? 🧐
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
Agreed. Someone has to get payed to pick the order and drive it. And then after those costs are payed they gotta make profit (no business wants to do business just to break even thats a charity). I get that and i accept theres a higher cost when I choose this convinience However do it honestly. Make the fees u see higher to more realistic levels and remove the hidden inflated ones. Trying to hide it makes it dishonest
funny how their profits keep going up, yet they pay shoppers less, and less every week, and the ratings system becomes more punishing, as we are required to complete more orders, in less time, and punished more on order accuracy, during times when store shelves are in low stock..
i don't know how instacart is having these markup prices as they are same as the store's own apps like loblaws, costco so its the stores who are responsible for these prices not instacart. instacrt is just fetching these given prices for them. thats why i use walmart as store in instacart as it has same item prices.
Oh my l,m a senior and used instacart for about 2 years in Calgary. Thought it was costing quite a bit however not being able to get out that easy it was convenient for me. My bill was usually over $300.00 so they probably made some good money off me. I wonder how many other seniors are getting ripped off. It’s sad when you live month to month on your old age pensions. Thank you for your video
I only shop from walmart because as they said, it is the in store prices. Depending how often you use the app, the membership might be worth it to save on costs. I live alone and I paid off the one year subscription within 5 months due to the savings.
Martin is correct, we call it a disability tax in the US also. These were essential services for the blind community and disabled in general… well before the general public used for Covid. I do better with annual memberships on Walmart+ and Shipt. Can’t avoid the markup, but no added service charges. Just a tip on each delivery.
But it's not a disability tax because it's not something being charged only to people with disabilities. Something that is applied to everybody equally is not discriminatory.
This was not very good reporting. Anyone find some of this a bit overly unnecessary and cringy? It's pretty obvious that every one of these delivering services are going to charge a premium based on the demand they have. Most people with common sense and who look at the charges half assed will notice what the sum of all costs is before they press the confirm payment button. And the fact that certain stores highlight "in store prices" on the app should also suggest that the other stores don't. At the end of the day, we are exercising a certain level of privilege with these kinds of services. However, I deeply empathize with the couple, but I feel like that story should be aimed at local government and a lack of social services which should be provided to people with certain limitations. Not necessarily a business purely built for profit. We get gouged left and right, we always pay more than we should for things really. Unfortunately sometimes we pay way, way more.
The entire delivery service is rip off for everyone aside from the delivery platform. Store owners pay a price to be listed on the delivery platform. Buyers pay a mark-up for the service received. Drivers don't get much if any of the mark-up. As a customer I know that drivers should be paid since they spend their time and use their car and gas, there is no debate there. However, when I already pay a significant amount of money as "service fees" (or whatever else they are called) to an app, it just feels weird that I should also tip the driver another significant amount of money because I should assume that they don't get much out of the service fees. Shouldn't a decent percentage of the service fees go toward the driver as their wage? I still pay a tip whenever I use this kind of service (which is rarely), but I just hope that some kind of regulation can be made regarding this. I really feel bad for the disabled people that are forced to use this kind of service.
Yup. I don’t care about ppl not reading fine print or drivers not getting tipped well. It’s symptomatic of the larger issue of the business itself being a rip off to consumers while exploiting drivers through the absurdity that is minimum wage.
People are surprised by this? It's just like ordering on UberEats. The burger and fries that costs $15 at the restaurant, costs $18-20 on the app and thats before any of the service fees.
One needs to account for Gas , Depriciation , service , insurance on your Car for that particular trip . Besides the oppourtunity cost of the time spend shopping .
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
@@mokahless When you are about to finalize your purchase, don't you see what your total is on the bill before you click "order"? Aren't those charges B&W on your receipt?
I’m not sure this is a fair story on Instacart. I have been using Instacart since 2020 when the pandemic started. I was paying month to month but recently subscribed to the one year subscription. I understand that prices are slightly higher but it’s the convenience and I save time on doing other things while someone does the shopping for me. Understanding I’m fortunate enough to be able to do this, whereas it may not make sense for others. I don’t mind spending a little more to save time to do other things. The app is only worth it if you’re a member to get free delivery and to avoid the additional fees. Walmart is fantastic because the prices match in store and there’s sales unlike other stores like Real Canadian Superstore where there’s never any deals. Costco prices are high on Instacart because remember you’re using the app. If you have a Costco membership, the prices are lowered a bit but you’re still paying $2-3 more. Depends on what you’re looking for and what you want. I love Instacart and will never stop using it.
labour cost is high. asking someone running around in the supermarket to grab 1 item cost $2.50 XD i would say its normal since it cost time to roam around and you are probably not paying tips to someone who deliver it. i wouldnt mind price mark up. i just hope the company are paying delivery guy enough without complain not getting tip. since ppl are preferring contact less delivery
The food delivery apps are just as expensive to use because of markups and fees. . Some even get paid by both ends like the restaurant being charged 35% and then the customer charged for the delivery.
Restaurant charged 30%, customer charged service fee, delivery fee plus tip. The problem is these delivery apps profit is always in the negative. They don't make any money. so they can't charge less than that.
$7 to spend an hour shopping driving delivering huge grocery orders is what instacart pays its shoppers and the shopper has to cover taxes gas insurance etc they use their own car too
I only shop at places that have the “in-store prices” label. And I still compare the prices in instacart to those shown on the grocery store’s website.
I ordered from Walmart several times and would pick it up. Multiple times there was missing items. Half the time when I'd tried to order, the app would say things where out of stock like milk or bread but it obviously wasn't out of stock when I could go in and there it is.
You don't get the same price because the grocery store has a weekly sale and the website company isn't aware of that. The business owner should see that and update the price through the website that affected customer expectations.
She said 'Thief' = Trini in the house. haha Having said that...we have to all come together to make our voices heard so we don't get robbed more than we already are. We also have to promote Hemp plastics once & for all.Thanks to Marketplace for your continued invaluable service. What would Canadians do w/o you Asha & crew?!
Small letters? Rather obvious that the customer pay for their service IF they want to use it. If the total price is a couple dollars to much, then customers can spend their own time and take car costs and probably pay even more.
Imagine being so disconnected from the real world that you don't realize what even food costs. Not only are they paying higher prices, not only are they paying fees, but then you're expected to pay a 15-20% tip on top of it all. Paying $70 extra on $200 of groceries and not even realizing it ... I just literally can't even imagine that.
That feeling when you have to watch Canada's news station because your countries news station (BBC) forces you to pay for content + does not makes these kinds of research.
Couple things they did not mention. Instacart has a membership that eliminates some fees. They have not been able to load PC company sales yet and might not ever. Costco beats many stores for bulk meats as their quantities are bigger usually. Same goes for produce. I always watch prices across all vendors when shopping.
Yup, that's why I never use them. Prepared-food delivery apps like Doordash also gouge you on the price, it's more expensive on the app vs the regular menu on like 75% of items.
People are really surprised that using a luxury service costs money? How else do you expect something to operate? I didn't realize businesses or people operated for free 🤦
@@FateBoost When you essentially corner the market for a luxury service, you can choose to do what you want. It is a free market & people have the option whether or not to use the service. Until someone else comes along & does to them what Netflix essentially did to Blockbuster 🤷.
Not really rip off. First I buy Costco online using my dad Costco card. I can buy online and have them delivery anytime without going to Costco with my dad. Yes is more expensive but I don't have to drive and go to Costco with my dad(we live in different cities). So is worth it for me. Also sometimes they have deals like $20 off a $100 order. When you have those coupon is well worth it.
I worked as an Instacart Shopper for about 4 months on and off just for extra cash. It never was an extra cash for me in my area. All the money that I received went straight to gas up my car. But it's s great to use in the bigger more urban areas. Only around 10% from my Instacart experience was actually my wage. 90% went to gas and maintaining my car in good condition.
I mean where is the cost of labor going to come from? Of course these businesses have to mark up their prices. It's no different than using any food delivery service like Uber Eats/ Skip the Dishes or Door Dash. You are paying someone for the service. Plus these 3rd party companies take a commission from these companies.
It’s obviously cheaper to bug yourself. Instacart is a company that makes money. I feel their customer service was rude though based on that conversation. But companies shouldn’t work for free
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
@@mokahless nope. Just making a statement. We know instacart costs more. You should assume sales won’t be reflected and that price may not be the same. I never use those services cause I’m cheap. But if I needed to I know it’s there. Convenience is and can be good but comes with a price. With prices of gas the person that suffers the most is the one doing the work. The tip and gas fee don’t even cover being paid for the work and wear and tear and gas on the car. So I feel bad for the workers more than the company. But if you made a business you would want to make money as well. That is the point.
This was a great piece but yeah I believe most people know when you order for convenience through third-party apps, there's gonna be markups all the way. Always shop in-person when you can, or use the retailer's direct delivery services. I do wonder how many of these big-name retailers have that built-in screen reader for the disabled though.
"Have a great day". It's so insulting that someone answers like that to a very valid question. I'd tell her "Go f#@% yourself, are going to have a great day if you're being ripped off?" Yeah, "no management here", they just left one person in the entire building. If that's the case, that person IS the active manager. Good thing I never used these services... Now I know that I also NEVER WILL!
I don’t think they understand that the reason why the items are more expensive because the store has to pay someone to pick the groceries, bag them, and then deliver them to you.. if you have to pay for extra employees then you need to charge extra cost to help pay for those employees.
Weird discussion if you really think the costs for driver, vehicle and so on not should be payed by the buyer who wants to save time and/or is lazy. What is your time worth? Crying for $4, OMG! The company offers a service you can CHOOSE to use. If a few dollars is a big issue, spend your own gas, time and pay a lot more in the end! 🤔 There’s a lot of stuff people want for free, and then they woke up… 😀
You think that is a rip off on delivery. I live in New Jersey in the States and say Pizza places like Dominos and Pizza Hut charge an additional delivery fee that IS NOT A TIP TO THE DRIVER. And the drivers USE THEIR OWN CARS FOR THE DELIVERY. Extra Delivery fee can between $3.00 to $5.00 depending on which place you are getting it from. And then you still have to tip the driver. Pizza Hut here charges a Delivery fee of $4.50. Dominos Delivery Charge is around $4.49 These are NOT THE TIPS TO THE DRIVER AT ALL! You have to add tips to the total if you want to tip the driver. Most people just assume that these extra Fees are for the driver but they would be wrong. And this is not going to the delivery driver No matter what the company states. It's more money for them, and less money for us. I like going to a local Pizza place that has "Free" Delivery. Not these corporate people that just want to take your money and pocket for themselves. I do call that greedy. And remember that the delivery drivers are using their own cars and their own insurance, not the companies at all are paying for the delivery except an hourly rate of pay that can be as low as $5.25 an hour because they are considered tipped workers.
But is it really that surprising? Without companies like Instacart, we wouldn't necessarily have the convenience of delivered groceries. Someone took the risk to create a business like this, and they developed the technology. They should be able to rewarded and make a good profit from that. Don't like the cost of grocery delivery apps? Go buy them yourself. Don't like the cost of Uber surge? Go try to find a taxi, or take public transit Don't like the markups on food delivery apps? Go drive there and order it yourself
"Shopping through a middleman costs more than shopping directly. 'Things companies don't want you to know' right after our special on why your paycheck is less than your salary. "
The fact that 20 grocery items cost Canadians $242.49 should be the real story.
^
You have nobody to blame but the liberal government, and yet, for some reason they keep getting elected.
@@PhrostyGaming you think the price is going to magically decrease if it was another party in power?
@@homeofsports3295 They can keep dreaming.
@@homeofsports3295 No, not magically.
Rather, due to the removal of taxes, tariffs and other barriers to trade that result in inflated prices of imported products
It's great that you can expect the same price on do it yourselves vs have someone else shop for you, use their car and gas. Even still the drivers are not paid enough. The drivers get ripped off the most.
The app must tell us the actual cost of shopping online, instead of rising the prices in a hidden way.
I also feel sorry for the drivers
💯
I am sure people would happily pay the markup if it is clearly conveyed in the beginning. But when it is hidden or assumed, that is the issue. As for the someone else is doing it for you argument- that is the whole idea of having it "delivered to you" app is about. Using gas, someone else's car, well someone signed up for it and that is why the delivery fees and service fees are for. Lastly, drivers are getting "ripped off" part, blame the freaking company and make them bring the change. Stop blaming it on the consumers that they don't tip enough. Its a job, a freaking job that one knows beforehand what it is about and like. Stop guilt-tripping the consumers.
@@AbdulAziz4CaNaDa I'm pretty sure the apps do tell you, but you're also free to not be lazy and look it up on the store website.
well if you work and you get ripped off, why do you still keep working there, I mean, isnt that "obvious"?
Why are customers SHOCKED to learn grocery & restaurant delivery through 3rd party apps is a expensive luxury . Amazon fresh , Walmart & in house supermarket delivery are the only semi affordable options
Exactly!
They aren't. They're shocked to learn that not all the fees are included in a transparent manner.
Even the title of the video says this so I can't blame you for "not watching the video." This, plus the number of upvotes you have, plus the relative newness of your account tells me you are a corporate shill account.
@@mokahless It's two seperate things though. The fees are transparent - they are on the checkout page. The price difference is the real markup since Instacart keeps the difference.
yeah, if this was the official store app I would be a little annoyed that the prices are not the same. However dealing with a third party app ofc, the prices are not going to be as upto date.
I’m glad that I’m not alone to notice the obvious! 👍
As an instacart shopper, I've been waiting for years for cbc marketplace to do a special on them! Appreciate you!
I would love to see videos about uber and lyft too.
And instacart is cutting the pay for Pickers and drivers to less than half in a single year just like uber and lyft , and Marketplace don't even consider that
Would love some mention of shoppers wages being cut like crazy and how bad the batch pay is now
Sooo you wanted them to basically blackmail the company who provides you that extra income?
@@OGxsixela blackmail?? 🤣🤣🤣
But no mention of how little they pay Instacart shoppers and how it's not worth working them if people don't tip.
It's IC's job to pay their employees. Putting the blame on the disabled customers living on $1000/month that can choose between using a delivery app and quite literally dying of starvation isn't constructive, because being forced by companies like IC to survive on tips without benefits is the problem, not individual customers being mean-spirited
@@meowmiaumiauw it's nothing against anyone . But I personally won't bother why would I if you make nothing between time and km, and gas a batch can be as low as $7 pay for a hour or more of a shoppers time gas km etc. It's quite literally not worth shopping with no tips. It is instacarts job but they don't care.
@@ambernope8480 💯 I have never and will never shop a no tip order…not gonna happen…
@@meowmiaumiauw
What did you do BEFORE you found instacart? Did you starve? It looks like you survived.
Tip your shoppers well. They are not even making minimum wage!
@@JJ-hw9dt The problem is like with Uber, IC lets people tip-bait. They'd have a lot more drivers accepting orders if they stopped that practice like DD, and GH. Plus, they're putting customers at risk letting them do that to people that know where they live.
I don't see the problem. You pay for convenience.
Exactly! Instacart is not a non-profit business
They should talk to the shoppers in how little they are paid. IC pays their shopper so little and often times have to shop for 2 to 3 people at the same time.
In my opinion, this is a half-assed story. There is so much more to investigate and tie together. At no point, were any IC shoppers involved in the story. If CBC wanted a truer picture, they should have tried to get shopper involved and do a tag-along with them to get the whole picture. I have done some comparisons between IC and actual grocery bills and they were much closer than this video intimates. A missed opportunity for a more detailed story.
Instacart advertises pricing on the app which may not reflect the actual in-store price at the time the shopper purchases it with the Instacart card. Instacart then charges the customer it's listed price and they pocket the difference. I am confident this is what is happening.
I would start asking the shopper for the receipt... It would confirm a lot.
@@PhrostyGaming it is specifically forbidden by Instacart to give the customer the receipt. Shoppers can and have been deactivated by IC. It is in our Terms
@@jasonthompson683 I wonder why 🤔
The point of this story is not about how much markup instacart is making, it’s about dishonest practice. Nobody is saying instacart should not make money, but they need to clarify why those hidden markups are not reflected in the itemized receipt such as service fees. If instacart’s business model is to make money from markups rather than service, they are just another reseller of retail products. This is borderline misbranding.
I like Marketplace but they sensation everything, also Instacart is a business, use the service don't use the service grocery ordering isn't new
It’s not hidden though. It’s clearly written for all customers to read BEFORE they place their order.
But let’s talk about how terrible they pay their employees…. That makes more sense. $7 for 100-200’ items when instacart is making a ton off its customers!
Not true just yesterday I shopped a $63 order for only 30 items been doing it 2 years so only took me 10 minutes to shop and 10 to deliver so you tell me what job in the world pays 63$ for not even 30 min of work lol?
They can pay these guys that much bc these people are choosing to work for them. Workers don't have leverage bc they just don't have the skills to get better jobs. You can thank unions and strict labor laws causing jobs to go overseas.
How ridiculous, people actually think it should cost the same to have someone do your shopping and deliver it. Like somebody is going to do all your shopping and deliver it out of the goodness of their heart. Good luck.
No, people understand that there are fees/taxes/tips to use the service. The problem people have, if you watched the full video, is that the product prices are different. There is no reason why X item should be priced regularly for $5.00 in store, when it costs $7.00 through Instacart, when the Instacart shoppers are getting it from the same store.
True
We pay delivery fees, annual subscription costs, and tips. We expect that. But the items themselves should not be marked up. Rip off.
They’re comparing the cost of the items, not how much the delivery driver is paid plus they tipped the driver… stop being dense
I think the problem is just the hidden fees. I hate when company’s don’t just tell you upfront what you’re going to pay.
Basically the same thing happens when you order through Skip, Dash and Uber eats. Everyone has their fingers in the cookie jar.
The only fingers in the cookie jar are these apps. Costco is paid the same for an Instacart order as they would be if you went into the store, for example.
Sure, go get it yourself.
I could have told you that Instacart is more expensive without all the extra work. Everyone knows they mark everything up. I see prices from $0.40 to $3 per item, markup. But you're paying for the convenience. They're the only place (at least in Southern California) that will accept an order with only a 2 hour advance notice.
I believe you can pay extra to do a short notice order for walmart as well. Costs around $15 but I think you get it within 2 hrs as well. Might be a little off with those numbers though.
They are charging service fee and delivery fee for the convenience. They shouldn't be charging hidden markups over those fees.
I disagree…getting your groceries delivered is a luxury. They can charge whatever they want. If they want to be more equitable maybe they can offer reduced fees for people using food stamps or seniors.
No, everyone doesn't know. Stop trying to brush this off like some corporate shill. The issue is the lack of transparency with all the fees. They can charge whatever they want but it's scummy to mark up items themselves. The simple fact that stores are saying instacart keeps the markup but instacart is hinting that the stores keep the markup is sus.
the difference is, you're paying more for the item itself. you've already paid for the extra convenience fees. you shouldn't have to pay more on the goods themselves.
i hope they also show how little they pay their shoppers. like $7 (no tip) for shopping and delivering sometimes over 50 items which takes more than an hr
Yep us which is why I multiapp with DD, UE, gh, and IC plus my own grocery delivery biz thru dumpling
Which is why most of us ignore those deliveries. They're not worth it.
Yes!!!!
@@LORDRA1DEN So customers are REQUIRED to tip in advance? Is this a new law?
I usually have a simple 20 item order I tip 8 dollars as I am on a set income. I would hope they can accomplish my order in about 30 minutes and total pay is 15 dollars. Instacart the company needs to increase base pay for shoppers to 10 dollars. Then my tip would make it 18. It's a shame a 35 billion company does not support its shoppers and preys on ppl who are disabled usually earning the least to pay shoppers wages.
Uber Eats or any other food delivery service the restaurant prices are almost always at least in some way higher than in store.
That's how independent contractors that get zero dollars an hour get paid. We're not doing those jobs for free.
Because people don't realize we are not doing this for free . Pay up or get it yourself. People do not want to pay people what they deserve. But Instacart does not pay us none of that 7.00 is it the tip you leave is almost all we get now.
And no tip orders always end up with bad reviews. They want it free and be serviced like god
@@zray8929 🎯exactly. Problem is a lot of poor and cheap people now think they can have this service.
It’s all in their terms and conditions that you’ve accepted prior to using the app. Those companies would get sued over $20.
Instacart is a business, their shoppers don't work for free. What do you expect? You can always do your own shopping if you don't like paying for convenience.
Obviously u don't know what u are talking about ? Their shoppers are also paid by customer as delivery fee and there is another fee , so customers paying for shoppers and delivery separately and those mark up is for Instacart plus a percentage fee from the store too. Their shoppers are paid per delivery. They are not their employees.
@@sunmoon-dm1ut It's Obvious that you don't know what you are talking about. Instacart Shoppers are contract employees. They receive zero benefits, pay for their own gas and insurance, and only can charge expenses on their IRS Tax Return. Once a week they receive payment from Instacart, this includes any tips. They are not paid directly by customers at all. You as a customer are paying for convenience. Shopping & Delivery to save you time is a convenience. No, It's not Free. If you don't like it, do your own shopping.
I'm glad the disabled were mentioned, though surprised that most people seem not to care. People feel it's sensible to criticize severely disabled people who can't physically go grocery shopping for their inadequate tips, but they don't seem to care that the money from these various markups isn't used to pay IC shoppers or provide benefits. It's a sad state of affairs
Being disabled has nothing to do with the price you are charged. You could be a 100% healthy Olympic Gold Medalists and be charged the same.
I’d also like to add you guys never once said a thing about the people picking these orders. Without us. And others willing to deliver your groceries. This wouldn’t even be possible
Preach
No one reads the fine print, I figured there would be a markup but that seems excessive. Especially, considering most ppl that rely on those apps might not make alot of money.
I've been an instacart Shopper for a year-and-a-half I am no longer with the company I was fired or deactivated as they call it I have seen this many times with the company that the prices they charge for items are higher than the store prices they tell us not to give the customer the store receipt as the customer will get an electronic receipt I think the big reason for this is they don't want the customer to see what was actually paid for however it is a service and so they are making their money with fees and markups its Retail 101 unfortunately but as a shopper we are forced to work for tips with the low pay the instacart gives Shoppers your incentive eyes to upsell and replace items that are unavailable with more expensive ones because it increases your tip and you make more money it's a pretty shady company in the end of the day and I'm glad I don't work for them anymore
You're paying extra for the shopping being done for you. Its not free. Has anyone actually thought about the driver doing the shopping for you? We use our personal vehicles and our own gas to get around town. For $3 to $12 per run. That usually is around 10 miles long. I personally dont think you're being ripped off. The prices aren't that off from what I've seen as a shopper.
the drivers dont see that pay
How could they possibly charge the same as in-store? They aren't doing this for fun.
They charge their fees for that. Hiding extra fees in the product's price is borderline scamming.
It also makes it super non-transparent. If there are 2 services, and I want to see which one is cheaper, I can't just compare their fees, I have to fill the entire cart with my shopping list on every app, then see which one was cheaper.
@@shane250 WRONG!!! Instacart is a business. Their shoppers don't work for free, the company needs to return a profit. Tell us how you work for free and your company doesn't even try to turn a profit.
@@shane250 a $3-5 fee is not enough to pay someone to go do your personal grocery shopping and deliver it to your house. Only some stores markup items, some do not. It's all very clearly listed on the Instacart app. This is literally how every business that sells anything operates. Do you think Walmart is selling you that steak for what they paid for it? Nobody says gas stations are "scamming" people when they charge $3.29 for a candy bar you can get somewhere else for $1.50.
@@kpstl26
I'm not saying "keep the fee at $2-$3". I'm saying "increase it to a point that makes financial sense, and let me see how much extra I pay vs going to the store". If I can't easily compare, and the difference is buried in some of the items...That's borderline scamming!
@@skydiver1013
Same answer I gave to
@Kristen Price
What's awesome about this is that the excess you are paying does not go to the shoppers/drivers. Our pay has gone down. In fact, if your order gets stacked with another, meaning that the shopper is shopping for you and another customer at the same time, both are paying a delivery fee and the shopper only gets part of one of those fees, not both. Also, how is it news that you are going to pay more for a luxury service? Also, Canadians pay crazy amounts for groceries.
For disabled Canadians this is a lifeline not a luxury service. If you a shopper Lose the attitude most of your customers fall in that demographic. Place your grievance where it belongs with the 35 billion dollar company.
The best thing they should do is refund the difference from final sale price or give people the option to give the difference to the driver as an extra tip.
Uber Eats does this all the time. I find this unethical as they are also charging service fee and delivery fees.
So those fees are for?
They did an episode re food delivery a long time ago. Check it out!
That's partially true, but it's actually the restaurants that set the price. Swiss Chalet even marks up the price on some items even on their own delivery website (chicken wings).
how else they gonna fund the app and their drivers lol, you pay for the convivence
@@Smile.911 yeah, but you're also paying service fees and whatnot.
As a shopper, you aren't factoring in our time that we take to shop for you too, plus gas. It's a luxury
And that isn’t the point. No one is saying that there shouldn’t be a premium for using the service but just that in terms of the actual product the prices should be the same. If it’s true that Instacart is keeping the markup from groceries I guarantee individual shoppers aren’t seeing any of that extra profit.
@@justschr and that they don't pay a lot of the 'extra' to employees the instead keep cutting wages to them regardless of the mark ups
@@ambernope8480 Instacart really doesn’t have any competition so there’s no incentives for them to innovate.
They do have a major competitor,
It's Cornershop!
Not the point. If the company factored those costs into the fees, people would be completely fine with that. Hiding those fees by marking up products is not a good way to do business. It's a pretty dirty way to do business if you ask me. I am fine with supporting the delivery person, and paying a bit extra for that. But I want to know exactly how much extra I'm paying.
I lived in Italy and the local supermarket chains all had grocery delivery services. But they would offer discounted or free shipping for Seniors and Disabled. And in store pricing and discounts/sales on products.
The lady owns and runs a business but has no idea her laziness costs $74.00 for one shopping trip.
There is a cost to laziness and ignorance
Rich people problems lol... She doesn't necessarily have a budget and just gets what she wants without caring about the price, then complains about it. Anyone with a budget or common sense knows how much the items they typically purchase usually cost, and would notice because they're paying attention and not just randomly adding things to their cart. Must be nice!
@@phoreal22 Only valid argument in this video was for disabled people/old people who would actually benefit from a service similar to this. Idk if their are any alternatives or subsidies for them.
Aside from that they can charge however much they want.
She clearly states there is an opportunity cost to shopping for groceries. He also clearly states that the additional cost isn't an issue, but it should not be hidden.
You people have a comprehension level of a 5 year old.
Don't feel that horrible for her tipping 5% on a $269 order. 🙄🙄 Treatment of shoppers by IC and customers is what they should actually be investigating.
Agree
Amen
It’s annoying that they are calculating the Costco without considering the amount Costco will charge instacart for membership
Tipping is not mandatory. The company should pay its employees better.
5% is horrible
I know my prices and very early in the pandemic I used this service and happily paid the service and delivery fees. But on my next attempt I immediately noticed the increase in prices. So since then I order direct and do curb side pickup. Not quite as convenient but well worth the savings!!
Side bonus (especially at Walmart) when they don’t have a specific item and you have agreed to a substitution, it’s most often an upgrade either in brand or size but you are only charged the price of the product ordered. (The only time this didn’t excite me was when I got 8 kg of flour instead of the 2 kg I ordered ...lol)
I mainly use Walmart and superstore and occasionally NoFrills. I have no major complaints about the other two but overall prefer Walmart as the easiest and quickest.
I agree. Using a grocery shopping and delivery service run by a for-profit second company, of course they mark things up. Being smart and using direct order and curbside is a good alternative.
Yes. I agree as well! Good for you
If it's worth it to you to make sure delivery drivers don't get paid to deliver your food: fine, pick it up yourself.
I use insta sparingly. One of the drivers left the store receipt and guys, I literally paid almost double the actual cost. Shocked was an understatement.
im shocked that you didnt realize before paying 😂
It's why we have a big warning not to leave the receipts. Customers ask for then and we are told to say no
I was told that it doesn't matter what's on the receipt what matters is what you've been billed on your account.
I'm disappointed that CBC didn't address the low wages and poor working conditions for Instacart shoppers. There is a human cost to this convenience.
I was a shopper and almost every item is marked up. And then for a order of 50 items a shopper is lucky to make 9$ and probably going to get tip baited
💯💯💯 people spend hundreds on food and tip very little on the orders…
I can tell you're a diva
If the retailers are setting the price, the retailers still need to pay fees to instacart, it makes complete sense that the grocery stores raise the price to neutralize the fees so that the grocery stores are not selling these products at a loss, and the delivery drivers can also make some money. Its not like it should be free to order delivery directly to your home.
It's the same on apps like SkipTheDishes - because the restaurant takes a hit on fees to the delivery company, prices are marked up higher than in at the restaurant itself.
There are almost no mark ups a Walmart, fyi, and the markups are clearly stated when you select your store and click on “view pricing policy” at the top. Also, please tip your shopper. The real controversy is how low we are paid!
Tips are part now of the batches but are still not adequate for the task. The other side of the coin is there's a lot of orders in a single batch for a truly low amount of money
Instacart prices are the same as instore prices at Walmart. Many other stores mark up items 10% and the customer pays regular price on sale items. So I will only use instacart for Wal-Mart.
Driver get half of they get last year
@@Tiger-zo2gn Did you watch the entire video? The stores do not set the prices on Instacart! Instacart the company keeps the difference between in-store prices and what they charge.
@@hmacklemore2226 this is false. Each retailer has a unique agreement with Instacart and sets their prices and decides whether to have markups or honor in store prices. Any markups are split between Instacart and that retailer. Instacart charges retailers to use their platform, many use markups as the way to pay this fee.
Thanks for doing this! Would be very interested to see how the Instacart shoppers are compensated. Would be great to force companies like Instacart to operate with transparency and integrity.
The pay has actually decreased
Low pay got larger orders are the norm now
@@you_a_noob8295 that’s so disappointing.
The service fee is for Instacart and not the shopper
They do not pay shoppers very much at all. Not even min wage
I mean this is kinda obvious tho. Theres no way the food can be driven and handpicked with someone being payed to do that on the low delivery and service fees alone its not enough to pay the costs plus make some profit.
Id just wish they were upfront with higher visible fees but at least u see what u are paying rather than hiding them with inflated prices hoping u dont notice.
Doing it this way is just dishonest plain and simple
The person who is doing the driving and handpicking is only taking home the tip, the rest of the fees and markups are going to the company
Of course you're getting ripped off. It's the same as uber or doordash. If you don't want to get ripped off, make a list and go get groceries yourself.
I don't care what anyone says. Instacart is better for those who don't have a car
I use Walmart and they don’t mark up the price, but it’s Walmart 🤷🏽♀️
I work delivery driver with instacart and they always asking me don’t give the customers the receipt, but CBC forgot about drivers and how much money we earn
As a delivery driver if I have 5 stars review which is no way because customer always mad because 1- they spent too much extra money 2- they are not only in one order so the driver has three orders in the same time (instacart do that to make worth it for the driver and because some customer doesn’t leave tip ) 3- not all items showing in the app available in the store “5 to 6 items in one order and up”. So I’ll make 200$ in 10 hours but if I don’t have 5 stars I’ll make 100$ in 8 hours
Should the government do something for this company because they are using the new comers emigrants , because at the end of the year when they are ready for filing the tax return they don’t have money to pay
Why the title? Instacart it really convenient and it saves you a ton of time.
Edit:
They also tell you and have a disclaimer on the all that certain retailers mark up the items, it's not Instacart. They do however use this mark-up to pay Instacart.
I realized that as well. The markup was always there. Some of the costs go to insuring the drivers for liability and yes , most of it goes to the company.
I'm not sure about everyone else, but on the app it shows the pricing policy button right at the top when you select the store.
Mark-ups are necessary to pay the drivers and running costs of the company.
What many do not realize is that it takes between 1-3 hours for a driver to go to the store, pick, checkout, pack and deliver the order.
Someone has to pay for that.
Otherwise, instacart would have incorporate those cost into the fees which would make them unattractive compared to Cornershop
Then why are the drivers only paid an average of $7 CAD per hour? I know because I’ve contracted for them.
@@noodlebean69 it's not the case.
Usually about $15-$25. However that's not taking into account Gas, Insurance,depreciation and maintenance.
Nearly 10 bucks for a bag of granny Smith apples?! That's insane!
I have tried Instacart but stopped due to the excessive mark-ups. If you do an online, side-by-side comparison on the same items, it is easy to see. As a result. we only shop with grocery stores that offer curbside pick-up.
why dont you try oh idk, doing your own shopping lol.
Having groceries and fast food delivered is a luxury in this day and age. Beforehand, it didn't matter who you were, somehow, some way you'd need to get your own groceries unless you had a family member or friend do it. The company however needs to compensate drivers better but I guess gig jobs like this aren't supposed to be lifelong careers.
There is a difference between wants and needs. For people who cannot or have difficulty buying groceries in person (like seniors or people with disabilities or health conditions), this service fulfills their need but it is very expensive (and I feel for them as they have limited options). But for other people, no matter how busy, this service fulfills a want because you have other options but you are willing to pay more to save yourself time. And these companies know that. In the end, the more companies involved, the more people have to get paid. And if I am a Costco member, I know that if I order from Costco online I pay more than if I drive to their warehouse to buy the same product so if you are using Instacart, you must not have a Costco membership so why should you pay the same price if you don’t pay for a membership and drive to the warehouse? 🧐
You can add your membership number to COSTCO.
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
Agreed. Someone has to get payed to pick the order and drive it. And then after those costs are payed they gotta make profit (no business wants to do business just to break even thats a charity). I get that and i accept theres a higher cost when I choose this convinience
However do it honestly. Make the fees u see higher to more realistic levels and remove the hidden inflated ones. Trying to hide it makes it dishonest
funny how their profits keep going up, yet they pay shoppers less, and less every week, and the ratings system becomes more punishing, as we are required to complete more orders, in less time, and punished more on order accuracy, during times when store shelves are in low stock..
i don't know how instacart is having these markup prices as they are same as the store's own apps like loblaws, costco so its the stores who are responsible for these prices not instacart. instacrt is just fetching these given prices for them. thats why i use walmart as store in instacart as it has same item prices.
Oh my l,m a senior and used instacart for about 2 years in Calgary. Thought it was costing quite a bit however not being able to get out that easy it was convenient for me. My bill was usually over $300.00 so they probably made some good money off me. I wonder how many other seniors are getting ripped off. It’s sad when you live month to month on your old age pensions. Thank you for your video
I only shop from walmart because as they said, it is the in store prices.
Depending how often you use the app, the membership might be worth it to save on costs. I live alone and I paid off the one year subscription within 5 months due to the savings.
@@louis8169 thanks for the information Louis. All the best
Martin is correct, we call it a disability tax in the US also. These were essential services for the blind community and disabled in general… well before the general public used for Covid. I do better with annual memberships on Walmart+ and Shipt. Can’t avoid the markup, but no added service charges. Just a tip on each delivery.
But it's not a disability tax because it's not something being charged only to people with disabilities. Something that is applied to everybody equally is not discriminatory.
I love Marketplace, but berating an hourly wage receptionist for the camera is just bullying. Please stop. Everything else is great work.
while still gross, it was a lot more toned down than i usually see
This was not very good reporting. Anyone find some of this a bit overly unnecessary and cringy? It's pretty obvious that every one of these delivering services are going to charge a premium based on the demand they have. Most people with common sense and who look at the charges half assed will notice what the sum of all costs is before they press the confirm payment button. And the fact that certain stores highlight "in store prices" on the app should also suggest that the other stores don't. At the end of the day, we are exercising a certain level of privilege with these kinds of services. However, I deeply empathize with the couple, but I feel like that story should be aimed at local government and a lack of social services which should be provided to people with certain limitations. Not necessarily a business purely built for profit. We get gouged left and right, we always pay more than we should for things really. Unfortunately sometimes we pay way, way more.
The entire delivery service is rip off for everyone aside from the delivery platform. Store owners pay a price to be listed on the delivery platform. Buyers pay a mark-up for the service received. Drivers don't get much if any of the mark-up.
As a customer I know that drivers should be paid since they spend their time and use their car and gas, there is no debate there. However, when I already pay a significant amount of money as "service fees" (or whatever else they are called) to an app, it just feels weird that I should also tip the driver another significant amount of money because I should assume that they don't get much out of the service fees. Shouldn't a decent percentage of the service fees go toward the driver as their wage?
I still pay a tip whenever I use this kind of service (which is rarely), but I just hope that some kind of regulation can be made regarding this. I really feel bad for the disabled people that are forced to use this kind of service.
Yup. I don’t care about ppl not reading fine print or drivers not getting tipped well. It’s symptomatic of the larger issue of the business itself being a rip off to consumers while exploiting drivers through the absurdity that is minimum wage.
People are surprised by this? It's just like ordering on UberEats. The burger and fries that costs $15 at the restaurant, costs $18-20 on the app and thats before any of the service fees.
One needs to account for Gas , Depriciation , service , insurance on your Car for that particular trip . Besides the oppourtunity cost of the time spend shopping .
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
@@mokahless When you are about to finalize your purchase, don't you see what your total is on the bill before you click "order"? Aren't those charges B&W on your receipt?
Ya but the shopper isn't getting that money.
I’m not sure this is a fair story on Instacart. I have been using Instacart since 2020 when the pandemic started. I was paying month to month but recently subscribed to the one year subscription. I understand that prices are slightly higher but it’s the convenience and I save time on doing other things while someone does the shopping for me. Understanding I’m fortunate enough to be able to do this, whereas it may not make sense for others. I don’t mind spending a little more to save time to do other things.
The app is only worth it if you’re a member to get free delivery and to avoid the additional fees. Walmart is fantastic because the prices match in store and there’s sales unlike other stores like Real Canadian Superstore where there’s never any deals. Costco prices are high on Instacart because remember you’re using the app. If you have a Costco membership, the prices are lowered a bit but you’re still paying $2-3 more. Depends on what you’re looking for and what you want.
I love Instacart and will never stop using it.
It's a business, the price is right on the app. People should always do comparative shopping.
Thats captalism for you lol
Rolled my eyes at the disability discount. Does any grocery store offer a disability discount? Such a cheeky thing to ask for.
labour cost is high. asking someone running around in the supermarket to grab 1 item cost $2.50 XD i would say its normal since it cost time to roam around and you are probably not paying tips to someone who deliver it. i wouldnt mind price mark up. i just hope the company are paying delivery guy enough without complain not getting tip. since ppl are preferring contact less delivery
You cannot say it’s rip off, you got to pay for the service people providing. Time and gas cost.
The fact that she said teef I rate her LMAO 🤣 Jamaican/Caribbean sayings. I was saying teef same time she said it.
Don’t fall for the pandering
The food delivery apps are just as expensive to use because of markups and fees. . Some even get paid by both ends like the restaurant being charged 35% and then the customer charged for the delivery.
Restaurant charged 30%, customer charged service fee, delivery fee plus tip. The problem is these delivery apps profit is always in the negative. They don't make any money. so they can't charge less than that.
@6:46 I never saw a Walmart that clean and well stocked in my life. Must be a Ca thing!
I would hope the ones that sign up to do the work are compensated decently, given that they are a 39 billion dollar company.
$7 to spend an hour shopping driving delivering huge grocery orders is what instacart pays its shoppers and the shopper has to cover taxes gas insurance etc they use their own car too
They aren't
@@juliereynolds753 Exactly. It's a complete service, if you can't afford don't use it and go shop yourself.
I only shop at places that have the “in-store prices” label. And I still compare the prices in instacart to those shown on the grocery store’s website.
never used this before, glad im not- sorry to the people who got ripped off :(
It’s not ethical to do it every week it’s for convenience. Example use if your like sick in bed or having car trouble’s.
Plus online sales get sub par produce , and the good looking produce is saved for in store customers
Those prices are just insane
I ordered from Walmart several times and would pick it up. Multiple times there was missing items. Half the time when I'd tried to order, the app would say things where out of stock like milk or bread but it obviously wasn't out of stock when I could go in and there it is.
You don't get the same price because the grocery store has a weekly sale and the website company isn't aware of that. The business owner should see that and update the price through the website that affected customer expectations.
She said 'Thief' = Trini in the house. haha Having said that...we have to all come together to make our voices heard so we don't get robbed more than we already are. We also have to promote Hemp plastics once & for all.Thanks to Marketplace for your continued invaluable service. What would Canadians do w/o you Asha & crew?!
It literally says on the app "prices higher than in-store" did we need all this?
yeah so not for you to watch this, look away, as youdid you know already
Small letters? Rather obvious that the customer pay for their service IF they want to use it.
If the total price is a couple dollars to much, then customers can spend their own time and take car costs and probably pay even more.
Imagine being so disconnected from the real world that you don't realize what even food costs.
Not only are they paying higher prices, not only are they paying fees, but then you're expected to pay a 15-20% tip on top of it all.
Paying $70 extra on $200 of groceries and not even realizing it ... I just literally can't even imagine that.
The same reason a chocolate bar costs $1.79 at a gas station but 82 cents at Dollarama... convenience.
💯💯💯💯
That feeling when you have to watch Canada's news station because your countries news station (BBC) forces you to pay for content + does not makes these kinds of research.
Couple things they did not mention. Instacart has a membership that eliminates some fees. They have not been able to load PC company sales yet and might not ever. Costco beats many stores for bulk meats as their quantities are bigger usually. Same goes for produce. I always watch prices across all vendors when shopping.
I found that here in America, they do the same thing. The prices are always cheaper inside the store than through and variety food delivery apps.
Yup, that's why I never use them. Prepared-food delivery apps like Doordash also gouge you on the price, it's more expensive on the app vs the regular menu on like 75% of items.
People are really surprised that using a luxury service costs money? How else do you expect something to operate? I didn't realize businesses or people operated for free 🤦
There’s a $20 service fee and $10 tip added anyways, do they really need a 20% markup as well?
@@FateBoost When you essentially corner the market for a luxury service, you can choose to do what you want. It is a free market & people have the option whether or not to use the service. Until someone else comes along & does to them what Netflix essentially did to Blockbuster 🤷.
Not really rip off. First I buy Costco online using my dad Costco card. I can buy online and have them delivery anytime without going to Costco with my dad. Yes is more expensive but I don't have to drive and go to Costco with my dad(we live in different cities). So is worth it for me.
Also sometimes they have deals like $20 off a $100 order. When you have those coupon is well worth it.
CBC, why is this even a story? Do you expect businesses to do value-add service for free? Cmon, you're better than this.
I worked as an Instacart Shopper for about 4 months on and off just for extra cash. It never was an extra cash for me in my area. All the money that I received went straight to gas up my car.
But it's s great to use in the bigger more urban areas.
Only around 10% from my Instacart experience was actually my wage. 90% went to gas and maintaining my car in good condition.
I mean where is the cost of labor going to come from? Of course these businesses have to mark up their prices. It's no different than using any food delivery service like Uber Eats/ Skip the Dishes or Door Dash. You are paying someone for the service. Plus these 3rd party companies take a commission from these companies.
*sigh* another person who didn't watch the video before commenting.
It’s obviously cheaper to bug yourself. Instacart is a company that makes money. I feel their customer service was rude though based on that conversation. But companies shouldn’t work for free
Either you're a corporate shill or you didn't watch the video. The issue isn't the extra cost. It's them hiding part of the fees by directly marking up listed items instead of being transparent and listing the full extra costs in the correct categories.
@@mokahless nope. Just making a statement. We know instacart costs more. You should assume sales won’t be reflected and that price may not be the same. I never use those services cause I’m cheap. But if I needed to I know it’s there. Convenience is and can be good but comes with a price. With prices of gas the person that suffers the most is the one doing the work. The tip and gas fee don’t even cover being paid for the work and wear and tear and gas on the car. So I feel bad for the workers more than the company. But if you made a business you would want to make money as well. That is the point.
how fitting that I got an Instacart ad on this video
If you can’t afford to buy thru the app DONT!
The crazy part is that the delivery people (who also do the shopping) barely see any of that.
What's crazier is uber has the same exact thing lol that's how these companies stay big by charging for convenience
This was a great piece but yeah I believe most people know when you order for convenience through third-party apps, there's gonna be markups all the way. Always shop in-person when you can, or use the retailer's direct delivery services. I do wonder how many of these big-name retailers have that built-in screen reader for the disabled though.
"Have a great day". It's so insulting that someone answers like that to a very valid question. I'd tell her "Go f#@% yourself, are going to have a great day if you're being ripped off?"
Yeah, "no management here", they just left one person in the entire building. If that's the case, that person IS the active manager.
Good thing I never used these services... Now I know that I also NEVER WILL!
It is a total rip off, costing a lot in service fee, delivery fee, tip not to mention the markup on items.
I don’t think they understand that the reason why the items are more expensive because the store has to pay someone to pick the groceries, bag them, and then deliver them to you.. if you have to pay for extra employees then you need to charge extra cost to help pay for those employees.
Weird discussion if you really think the costs for driver, vehicle and so on not should be payed by the buyer who wants to save time and/or is lazy. What is your time worth?
Crying for $4, OMG!
The company offers a service you can CHOOSE to use. If a few dollars is a big issue, spend your own gas, time and pay a lot more in the end! 🤔
There’s a lot of stuff people want for free, and then they woke up… 😀
You think that is a rip off on delivery. I live in New Jersey in the States and say Pizza places like Dominos and Pizza Hut charge an additional delivery fee that IS NOT A TIP TO THE DRIVER. And the drivers USE THEIR OWN CARS FOR THE DELIVERY.
Extra Delivery fee can between $3.00 to $5.00 depending on which place you are getting it from. And then you still have to tip the driver.
Pizza Hut here charges a Delivery fee of $4.50.
Dominos Delivery Charge is around $4.49
These are NOT THE TIPS TO THE DRIVER AT ALL! You have to add tips to the total if you want to tip the driver. Most people just assume that these extra Fees are for the driver but they would be wrong.
And this is not going to the delivery driver No matter what the company states. It's more money for them, and less money for us.
I like going to a local Pizza place that has "Free" Delivery. Not these corporate people that just want to take your money and pocket for themselves. I do call that greedy.
And remember that the delivery drivers are using their own cars and their own insurance, not the companies at all are paying for the delivery except an hourly rate of pay that can be as low as $5.25 an hour because they are considered tipped workers.
But is it really that surprising? Without companies like Instacart, we wouldn't necessarily have the convenience of delivered groceries. Someone took the risk to create a business like this, and they developed the technology. They should be able to rewarded and make a good profit from that.
Don't like the cost of grocery delivery apps? Go buy them yourself.
Don't like the cost of Uber surge? Go try to find a taxi, or take public transit
Don't like the markups on food delivery apps? Go drive there and order it yourself
"Shopping through a middleman costs more than shopping directly. 'Things companies don't want you to know' right after our special on why your paycheck is less than your salary. "
what they don't say is that instacart gets like 30 percent fee from grocers so they have to mark up the prices to make up for it