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Instacart launches Express – Amazon Prime for Groceries

techcrunch.com

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Re: Instacart launches Express – Amazon Prime for Groceries

#2

Post by minimaxir »

In testing, Express members ordered from Instacart, again according to Mehta, two or three times weekly. The caveat to the Express deal is that delivery is only free on orders over $35.

So Express members are spending $70-105+ per week on groceries? I guess Instacart must be a hit with families.

For those kinds of users who spend $280-$420 per month on groceries, $99/year is relatively small.

Re: Instacart launches Express – Amazon Prime for Groceries

#5

Post by dangrossman »

messick wrote: post #4

The author of this piece doesn't seem to know much about Amazon's product offerings. Prime is free 2 day shipping along with some free video streaming. Fresh is the Grocery delivery service.

Prime is a subscription you pay in exchange for free shipping from Amazon, and Express is a subscription you pay in exchange for free shipping from Instacart. Offering such a subscription had a positive impact on revenue-per-customer for Amazon, and Instacart may benefit from the same. The author seems to have made a fine analogy to me, and the fact that Amazon also has a separate grocery delivery service is completely tangential to his point.

Re: Instacart launches Express – Amazon Prime for Groceries

#6

Post by jmduke »

Mehta, in a call with TechCrunch, stated that simply tacking on new cities to his company’s service doesn’t, in a sense, prove much; that’s just hiring.

I think the whole idea behind geographic expansion is that it proves more people are willing to pay for service X or Y than just those living in the Bay Area, who are perhaps the most amenable cross-section of the country for a service like this.

(Not advocating expansion for expansion's sake -- I think Instacart is making a wise choice -- but saying "It's just hiring" is disingenuous.)

Re: Instacart launches Express – Amazon Prime for Groceries

#7

Post by jmduke »

minimaxir wrote: post #2

In testing, Express members ordered from Instacart, again according to Mehta, two or three times weekly. The caveat to the Express deal is that delivery is only free on orders over $35. So Express members are spending $70-105+ per week on groceries? I guess Instacart must be a hit with families. For those kinds of users who spend $280-$420 per month on groceries, $99/year is relatively small.

Napkin math is saying that you'd only have to purchase thirteen orders a year (13 * 7.99 = roughly 104) at above $35 each to recoup your investment. Even for someone living alone, that's very easy to do.

Re: Instacart launches Express – Amazon Prime for Groceries

#8

Post by libria »

count wrote: post #3

Isn't AmazonFresh Amazon Prime for Groceries?

No; did you read the article? AmazonFresh does not offer benefits at a yearly fee similar to Prime. The closest thing it has to that is extra benefits for those who purchase $300 in a certain time frame (Big Radish).
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