32
Grade D

Instacart Terms of Service

Grocery Delivery | Last reviewed: January 2026

Tip Policy History: Instacart faced significant backlash for using customer tips to subsidize base pay, effectively reducing what the company paid shoppers. While they've modified this practice, tip handling remains a point of controversy.

Overview

Instacart's grocery delivery model involves more complex logistics than restaurant delivery - shoppers must select items, make substitution decisions, and manage temperature-sensitive goods. Their terms reflect this complexity while still protecting the platform over workers and customers.

Customer Terms Concerns

Complex Fee Structure

Instacart charges delivery fees, service fees, heavy item fees, and potentially surge pricing. Additionally, in-app prices often exceed in-store prices. The total markup can reach 20-30% over shopping in person.

Substitution Authority

Terms grant shoppers broad discretion to substitute items. While customers can set preferences, substitutions may not match preferences, and refunds for unwanted substitutions aren't guaranteed.

Tip Modification Window

Customers can modify tips after delivery, creating uncertainty for shoppers who may have provided excellent service. Some customers use this to bait with high tips then reduce them.

Shopper Terms Concerns

Earnings Unpredictability

Shopper pay varies dramatically based on order complexity, tips, and promotions. Base pay has decreased over time, making shoppers increasingly dependent on tips for viable earnings.

Batch Assignment Algorithm

The algorithm determines which orders shoppers see and can prioritize certain shoppers over others. Poor metrics can result in fewer lucrative batches, creating a downward spiral.

Rating Impact

Customer ratings significantly impact batch access. Ratings can suffer from factors outside shopper control (out-of-stock items, app issues, long checkout lines), but consequences fall on shoppers.

Shopping Time Pressure

The app tracks shopping time and penalizes slow shoppers. This creates pressure to rush, potentially affecting order accuracy and quality.

Grocery-Specific Issues

Instacart's grocery model creates unique problems:

  • Cold chain liability unclear for spoiled items
  • Produce quality subjective and disputed
  • Alcohol delivery adds regulatory complexity
  • Large orders create physical strain for shoppers
  • In-store shopping risks during health emergencies