Instacart's First Ever Credit Card Is Its Latest Strategy To Attract Customers
Bloomberg Second Measure may have slightly understated things when they said grocery delivery companies like Instacart "experienced heightened demand during the pandemic." Q1 and Q2 of 2020 saw Instacart's sales go up a staggering 157%, and while revenue has stayed high, for the last year, sales figures have been lower than the same period a year ago. Bloomberg points to grocery delivery competition for Instacart, as well as a decline in the average sales per customer. Though some metro areas still show positive growth, it's clear that Instacart needs to develop new strategies if they wish to continue to grow.
One strategy Instacart unveiled in March of 2022 is offering its grocery delivery software as a white label platform to retailers who can make use of Instacart's infrastructure while keeping the customer experience as part of a retailer's brand experience. Forbes explains the new model, noting that Instacart has recruited ALDI, Schnuck Markets, Publix, and more among its launch partners. We also reported on Instacart's subscription upgrade in June 2022. Instacart's latest move, announced July 22, 2022, is an Instacart credit card with unique benefits for its cardholders.
The new Instacart Mastercard offers grocery benefits to members
Business Wire announced the launch of the Instacart Mastercard with Chase, the largest player in the U.S. co-branded credit card business. Instacart hopes to boost revenue by creating brand loyalty from consumers who want to maximize the benefits from the new card. The program offers 5% cash back on Instacart purchases from a network of more than 800 retail brands, with more than 70,000 stores nationwide. Customers also receive 5% cash back when they pay for travel through the Chase Travel Center, along with smaller percentages of cash back for purchases in other categories.
Early adopters stand to gain even more, as the first 10,000 approved applicants get a $200 Instacart credit, along with a free year's subscription to Instacart+. Instacart's credit card is clearly designed to increase brand visibility and encourage more frequent use of its app, just like its blog that shares food insights and shopping trends that both reflect and change the ways we interact with grocery shopping and foods.