Uber is coming for Instacart.
Uber has announced updates to its Shop and Pay feature to address issues commonly raised by delivery workers. The quality, launched last year, allows drivers to opt-in to receive grocery and other retail shopping trips before dropping off orders. The aim is to follow the model of Instacart, the grocery delivery giant which reported a surge in sales and profits in Q4 2022. Since launch, nearly 200,000 drivers have shopped each month in the US, compared with over 600,000 people working as Instacart shoppers. The updates aim to ensure drivers do not hate the job as Uber seeks to expand its grocery delivery offering.
The first update provides a solution to out-of-stock items, a point of dissatisfaction in surveys. When a driver tells the app they cannot find an item, it will show a list of suggested substitutions based on similar brands or objects, allowing the driver to speed up the decision-making process. The second update addresses problems caused by physical credit cards used to pay for orders; drivers can activate a digital card on their phones using Apple or Google Pay. Finally, drivers will be given greater clarity over charges before accepting them, allowing them to judge whether they will fit in their car and contain fragile or heavy items.
The update aims to help Uber scale up its grocery delivery service, which forms part of the company’s plan to cross-sell customers across its platform. Drivers and shoppers are a vital part of the plan, and increasing usage of the offering requires the company to ensure their experience is as easy as possible. While Instacart has a similar feature for substitutions, it is claimed that drivers still need to use a physical card if the order exceeds the price tap limit, which Uber seeks to avoid.
The article is “Uber is coming for Instacart.”