Instacart, the Y Combinator company, that delivers your grocery in cities like San Francisco in one-hour or three-hour service range for the costs of $10 and $4 respectively has come up with an annual fee structure for unlimited home deliveries.
At a small fee of $99 a year the company waives the 3-hour delivery fee and also removes the psychological barrier of customers to ordering. The new service is dubbed as Instacart Express and currently it is offering it in beta phase.
Instacart chief executive officer Apoorva Mehta said they are avoiding the mistakes that were earlier made by high-profile IT companies such as Kozmo and Webvan. He added that instead of offering such service without any minimum order the company starts with $10 orders of customer and sends a staff shopper to local merchant to load grocery and then delivers it.
Mr Mehta earlier worked at Amazon and found the power of Prime service of the retailer.
Amazon currently offers unlimited free home delivery for a fee of $79 a year.
The Instacart Express only waives cost of three-hour home delivery and not the one-hour delivery. So the one-hour delivery service still costs $10 for customers.
As of now Instacart is only focusing on groceries and its service in San Francisco and nearby Silicon Valley cities Palo Alto and Mountain View.
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