January 25, 2021

Mastercard, Instacart Team On Delivery Benefits

Shoppers who use a U.S.-issued Mastercard to pay for groceries delivered by Instacart are being offered a way to save money, the New York-based global financial services corporation said in an announcement.

Starting Thursday (Oct. 1) through March 31, Mastercard cardholders without an Instacart Express membership are eligible to receive two months free when they sign up for an annual membership for $99. A Mastercard is required as the default payment method. The feature is also available for debit, small business and prepaid card users, according to the announcement.

An Instacart Express membership provides customers with unlimited free delivery on all orders of $35 or more, as well as a reduced service fee.

“One thing is certain — consumers will continue to seek out digitally-driven experiences regardless of what the future holds,” said Jess Turner, executive vice president of Mastercard’s North America products and innovation, in the announcement. “We are using our technology and partnerships to make sure our products can power both value and convenience in their everyday lives as well as the priceless possibilities that lay ahead of us.”

Instacart, a San Francisco-based startup, partners with more than 400 retailer chains to offer delivery and pickup of groceries from more than 30,000 stores across 5,500 cities in the U.S. and Canada, according to the announcement.

In August, Walmart partnered with Instacart to offer same-day delivery across select markets in the U.S.

It’s a partnership that adds to Instacart’s roster of retailers as it seeks to gain critical mass in an ongoing battle against Amazon and its subsidiary, Whole Foods. Instacart already has relationships with Target, Costco and Kroger, among others.

Instacart had been Amazon/Whole Foods’ exclusive delivery partner before the deal ended two years ago. Today, Amazon offers its own grocery delivery via Amazon Prime Now and Amazon Fresh, leveraging its presence through Whole Foods and through Amazon Prime.

Last month, Instacart announced its first deal with a convenience store chain, adding 7-Eleven to its online ordering platform. Initially, it will make deliveries from 750 stores nationwide in a first phase covering Virginia; Maryland; Washington, D.C.; Florida; and Texas.

Instacart said it plans to follow this up with a nationwide rollout over the next few months that will eventually include more than 7,000 7-Eleven stores across the country.

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