Instacart Slashed Its Minimum Order—And Members Started Shopping More Often

Instacart (CART) wanted to get more orders in the door. Its strategy? Slash the minimum.

The delivery company cut the minimum basket size for Instacart+ members from $35 to $10 ahead of Thanksgiving, spokeswoman Kristin Chasen said. The move has already helped boost use, CFO Emily Reuter said Tuesday at a Morgan Stanley conference.

“That is something that we’re [starting] to see help improve overall order frequency,” Reuter said, according to a transcript made available by AlphaSense. “We’re constantly looking at ways to try to make that membership even more compelling.”

The new policy lets members use Instacart when they “just need an item or two,” Instacart said in a letter to shareholders last month. It also undercuts the price at which competitors will waive delivery fees for those with paid membership plans, the letter said.

The Instacart+ subscription service costs roughly $10 a month—or $99 annually—and waives delivery fees on grocery and retail orders of $10 or more, as well as Costco (COST) and restaurant orders of at least $35. (Instacart charges service fees for these deliveries.) Customers without a membership are subject to a $35 minimum and delivery fees, according to Chasen.

Target’s (TGT) Circle 360 offers free, same-day delivery on orders of $35 or more. Walmart (WMT) Plus provides free deliveries when members spend at least $35; Many users pay more to get items expedited. Amazon (AMZN) Prime comes with expedited delivery on orders of any size. For about $10 a month, Prime members can have delivery fees waived on grocery orders of at least $35.

Instacart had 77.5 million orders in the last quarter of 2024, up 11% year over year, according to its shareholder letter. The company didn’t provide membership figures, but reported that total revenue was up 10% year-over-year and net income hit $148 million, a nearly 10% jump from the fourth quarter of 2023.