Instacart Expands Online SNAP Acceptance to Reach 96% of SNAP Households Nationwide with Same-day Grocery Delivery

Rhea-AI Summary

Instacart (NASDAQ: CART) has expanded its retail partnerships to allow SNAP recipients to shop online for groceries from more than 170 retail banners across more than 14,000 stores, reaching 96% of SNAP households in the U.S. Research shows that online grocery shopping offers significant advantages for low-income households, including SNAP families, by helping them extend food budgets, maximize time savings, and reduce stress. Instacart also offers a discounted Instacart+ membership for SNAP participants, providing access to same-day delivery and pickup from over 1,400 retail banners across the country.

Insights

Market Research Analyst

The integration of SNAP benefits with online grocery platforms like Instacart represents a significant shift in consumer accessibility and has the potential to influence shopping behaviors on a large scale. With Instacart's expansion to allow SNAP recipients to use their benefits online, a previously untapped demographic is now being introduced to the convenience of digital grocery shopping. This move could potentially increase customer loyalty and basket size for participating retailers, as the convenience factor is a strong driver in consumer decision-making. Additionally, the partnership with over 170 retail banners enhances Instacart's competitive positioning in the market, potentially increasing its market share and strengthening its brand association with inclusivity and convenience.

From a socio-economic perspective, this initiative aligns with broader trends in digital inclusivity, ensuring that lower-income households have access to the same conveniences as other segments of the population. This could result in positive brand perception and customer goodwill, which are intangible assets that contribute to long-term brand equity. The potential increase in produce purchases by online shoppers, as indicated by the research, could also have a positive impact on public health outcomes, which may reflect favorably on the participating companies from a corporate social responsibility standpoint.

Economist

The expansion of online SNAP acceptance could have macroeconomic implications by potentially increasing the velocity of money within the grocery sector. By streamlining the shopping process for SNAP recipients, Instacart and its retail partners are removing barriers to consumption, which can lead to a more efficient allocation of SNAP funds. This efficiency might result in increased frequency of purchases and potentially stimulate demand for grocery products, especially fresh produce.

In the long-term, if the ease of use translates to more consistent spending of SNAP benefits, it could provide a more stable revenue stream for retailers. Furthermore, the discounted Instacart+ membership for SNAP participants could incentivize increased usage of the platform, which might lead to higher overall consumer spending in the grocery sector. This could have a positive effect on the economy by supporting jobs within the retail and delivery sectors and by potentially leading to increased orders from suppliers and producers to meet the heightened demand.

Social Policy Expert

The strategic decision by Instacart to expand SNAP online acceptance is not just a business move, but also a significant development in social policy, particularly in addressing food accessibility and insecurity. The ability for SNAP families to shop online and receive same-day delivery can be seen as a step towards reducing the 'grocery gap' that affects many low-income households, especially those in food deserts or with limited transportation options. By making healthy food options more accessible, this initiative could contribute to reducing disparities in diet-related health outcomes among different socio-economic groups.

Moreover, the focus on dignity of choice and the reduction of shopping-related stress for SNAP recipients is a noteworthy aspect of this expansion. It underscores a growing recognition in the private sector of the importance of social determinants of health and how corporate policies can play a role in addressing these issues. The potential societal benefits from such initiatives may lead to further public-private partnerships aimed at improving food equity and could influence future social policies.

SNAP recipients can now shop online with their benefits from Hy-Vee, Schnucks, and more than 10 additional Kroger banners including City Market, Dillons, Fred Meyer, Harris Teeter, King Soopers, Mariano's, Metro Market, Pick n' Save, Smith's and more, delivered same-day via Instacart

Instacart now offers online SNAP acceptance with more than 170 retail banners across more than 14,000 stores 

SAN FRANCISCO, Jan. 30, 2024 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, today announced a series of retail expansions that will allow customers to use Supplemental Nutrition Assistance Program (SNAP) benefits to shop online for groceries for same-day delivery from Food City, Gordon Food Service, Hy-Vee, Schnucks, and additional Kroger banners including Baker's, City Market, Dillons, Fred Meyer, Gerbes, Harris Teeter, King Soopers, Marianos, Metro Market, Pick n' Save, Smith's and QFC. The new retail expansions help make groceries more accessible to more SNAP families, allowing them to save time and maximize their budgets. Instacart now offers online SNAP acceptance from more than 170 retail banners spanning more than 14,000 stores, reaching 96% of SNAP households in the U.S.¹

Research published by No Kid Hungry, the University of Kentucky, and Instacart revealed that online grocery shopping offers significant advantages for low-income households, including SNAP families. The study found shopping online helps families extend food budgets, maximize time savings, and reduce stress. The study also revealed that individuals who grocery shopped online purchased more produce than in-store shoppers, without increasing their total grocery bill.²

"We're committed to offering families access to fresh food through an accessible and affordable online shopping and delivery experience. By expanding with retailers, we're giving SNAP families greater dignity of choice, and helping many experience – for the first time – the convenience of having groceries from these retailers delivered to their doorstep," said Sarah Mastrorocco, Vice President and General Manager of Instacart Health. "The USDA reported that 41% of SNAP households have kids.³ We're proud to bring SNAP online with these trusted retailers, helping ease the grocery shopping burden for caregivers by offering greater value, and unparalleled online selection and choice to SNAP families across the country."

To use SNAP benefits to shop from the more than 170 retail banners available on Instacart, customers can simply add their SNAP payment card to their Instacart profile. At checkout, SNAP users can select how much of their benefit they would like to allocate to eligible items in their order.

Instacart offers a discounted Instacart+ membership for SNAP participants, designed to give families access to same-day delivery and pickup from Instacart's more than 1,400 retail banners across the country. Through the program, anyone who has used an EBT SNAP card to purchase groceries on Instacart can get Instacart+ for 50% off for 12 months (terms apply*). With Instacart+, households can access free delivery and pickup on orders over $35, 5% credit back on eligible pickup orders, and reduced service fees on every order.

About Instacart

Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,400 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 80,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com.

¹ Based on the number of people in the U.S. enrolled in SNAP (USDA) in 2022. Instacart estimate (as of January 2024) based on the number of EBT SNAP households in areas serviced by EBT SNAP-enabled retailers on Instacart.
² Anderson Steeves, E., DeWitt, E., Gillespie, R., Trude, A., Gustafson, A., "Barriers and facilitators to online grocery shopping among Supplemental Nutrition Assistance Program (SNAP) Participants: A Mixed Method Study". Ecology of Food and Nutrition, accepted for publication 2022 https://www.nokidhungry.org/sites/default/files/2022-09/NKH-Instacart-Online-Shopping-Micro-Report-v2.pdf
³ United States Department of Agriculture (USDA), "Percentage of Participating SNAP Households with Children (FY 2018)"  https://www.fns.usda.gov/SNAP-State-characteristics
*To be eligible for the one year Instacart+ EBT promotional offer, you must place an EBT order on Instacart in the six months prior to redeeming this offer. You'll pay the discounted rate for the first year and the applicable membership fee thereafter. You can cancel anytime. For active Instacart+ members, discount applies after your current membership term ends. Terms apply.

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SOURCE Maplebear Inc. dba Instacart

FAQ

Which company has expanded its retail partnerships to allow SNAP recipients to shop online for groceries?

Instacart (NASDAQ: CART)

How many retail banners are available on Instacart for SNAP recipients to shop from?

More than 170 retail banners

What percentage of SNAP households in the U.S. does Instacart reach with its expanded retail partnerships?

96%

What advantages does online grocery shopping offer for low-income households, including SNAP families?

It helps them extend food budgets, maximize time savings, and reduce stress.

What benefits does Instacart offer to SNAP participants?

Discounted Instacart+ membership for same-day delivery and pickup, free delivery and pickup on orders over $35, 5% credit back on eligible pickup orders, and reduced service fees on every order.