How Instacart's $10 Minimum Order Boosted Shopper Frequency in 2025
Discover how Instacart's strategic reduction of its minimum order size to $10 for Instacart+ members is transforming shopping habits and setting new industry standards.
Key Insights
- Instacart increased order frequency by lowering the minimum basket size for its subscription members.
- The minimum order threshold was reduced from $35 to $10 about four months ago, encouraging more frequent purchases.
- Competitors typically require a $35 minimum to waive delivery fees, making Instacart's offer more attractive.
In a bold move to attract more customers, Instacart has significantly lowered the minimum order amount for its Instacart+ members from $35 to just $10, a change implemented ahead of the Thanksgiving season. This adjustment has already led to an increase in order frequency, as confirmed by CFO Emily Reuter during a recent Morgan Stanley conference.
Reuter emphasized, "We are seeing positive trends in overall order frequency as a direct result of this change. Our focus remains on enhancing the value and appeal of our membership program."
Instacart's new policy allows subscribers to conveniently shop for just one or two items without meeting a high minimum order requirement. This strategy not only improves customer convenience but also positions Instacart competitively by offering lower thresholds for free delivery compared to other major retailers.
The Instacart+ subscription, priced at approximately $10 monthly or $99 annually, waives delivery fees on grocery and retail orders of $10 or more, and on Costco and restaurant orders starting at $35. Non-members still face a $35 minimum and delivery charges.
In contrast, Target's Circle 360 and Walmart Plus require a $35 minimum for free delivery, while Amazon Prime offers expedited delivery on any order size but waives delivery fees on grocery orders over $35 for a similar monthly fee.
Instacart recorded 77.5 million orders in Q4 2024, marking an 11% increase year-over-year. Although specific membership numbers were not disclosed, the company reported a 10% revenue increase and a net income of $148 million, reflecting nearly a 10% rise compared to Q4 2023.
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