Instacart Seeks Fees from CPGs
The delivery service is working with several major CPG companies, including PepsiCo, Unilever and Nestlé, to provide discounts and delivery fees to cover its costs. Instacart charges a delivery fee of $5.99, but that’s not enough to make the company profitable. It had previously marked up some products, but that led to a customer backlash.
RL’s take: When it comes to e-commerce, one of the ongoing challenges is that consumers tend to want everything for free. Spreading the cost to CPG manufacturers is a good idea, assuming that the mechanics of payment can be worked out.