Instabuggy evolves its pricing

The grocery delivery company aims to eliminate markups and offer a flat delivery fee structure.

Grocery delivery company Instabuggy has changed its pricing model, establishing a catch-all fee in a move to match in-store prices as it scales.

The brand is now offering what it says is “approximate in-store pricing,” versus the varying “convenience fee” markup that had been on products.

It now charges a $19.98 “pick, pack and delivery” fee, regardless of basket size. Previously, deliveries would require a minimum order of $35 (which it’s now scrapped), and the fee would vary based on the amount spent, with orders above $80 free.

Instabuggy currently provides grocery delivery in the Greater Toronto Area within as short a period as one hour. Shoppers can go online or use a mobile app to select their store, depending on their location, and have Instabuggy’s shoppers pick up and deliver their items (retail partners currently include Sobeys Urban Fresh locations, Costco, FreshCo., Coppa’s, Summerhill Market and the LCBO, among others).

Working towards a no-markup model has been among the company’s goals since launching in 2015. Expansion plans are also currently underway for the brand, namely to Ottawa and Vancouver later this year. As it scales beyond the Toronto area, the goal was to provide a “no brainer” experience for shoppers, who could be confident they’re getting in-store prices but also the ability to shop from home or the office, says founder Julian Gleizer.

The majority of Instabuggy orders are over $100, with its average basket size hovering around $150, Gleizer says when asked whether the $19.98 fee might be a deterrent, specifically for smaller orders. The flat fee was the way to get its pricing more in-line with what’s at shelf, he says, adding that the handpicking and delivery fee allows customers to buy “their time back.”