Why is the company likely to crash on the ground?

[ad_1]
<div _ngcontent-c14 = "" innerhtml = "

One of the areas of interest for Forbes readers is the grocery industry and more specifically Instacart. It is easy to write about Instacart because of the increase in the amount of press received by the company for its labor management mistakes, its policy of significantly increasing the price of groceries and the growing awareness of any intention to become a competitor to the grocery retailers it serves.

While grocery retailers have been convinced that it is advantageous to have a contract with Instacart for a multitude of reasons, grocery retailers should not be subject to the following: fifty years and in some cases more 100 years old. Executives of these companies entrusted the future of their brands and their companies to an Internet start-up led by individuals with little experience in commerce and groceries. & nbsp;Two words describe why the grocery leaders have contracted Instacart: despair and fear.

Instacart has also created a reputational risk crisis for retailers who are using its services as a result of implementing a new pay and tipping policy reducing the amount of compensation received by some workers to less than $ 1.00 from the hour. Instacart generates more and more negative press articles.

Is Instacart a savior or the grim reaper?

When Amazon announced the acquisition of Whole Foods in June 2017, grocery store executives were rightly scared. Needing a prompt and satisfying response to board members requesting information on a plan to offer a grocery supply the size of Amazon Prime, executives saw a savior in the form of Instacart. With Instacart, they could immediately compete with Whole Foods without having to build their own infrastructure.

To convince grocery makers to contract Instacart, the company has argued the argument that Instacart would not dare to compete with any of the food retailers that it serves. Frames bought the hook, line and lead from Instacart 's argument and have contracted with the company for the fulfillment of online orders and last mile delivery.

However, something of interest has become evident, as Instacart has increased the number of retailers using its services. Instacart had access to a huge amount of data, including customer data, and Instacart has become the face of online shopping orders. More importantly, Instacart has learned the strengths and weaknesses of all the retailers it serves as well as the food industry as a whole.

Instacart also prevents employees from its establishment from providing receipts to customers because Instacart marks the price of the grocery store. The policy provoked strong reactions from consumers not only in the United States, but also Canada. The lack of transparency on the prices of customers buying from the grocery store is inexcusable. (Instacart has implemented a strategy of sending an email to customers who complain about the markup.Email is a mix of dodge, immersion, duck, dive and d & # 39; uh … dodge).

In 2019, grocery executives who contracted with Instacart began to question the opportunity to authorize Instacart to control as much data and manage customer relationship when from the delivery to the last kilometer. Leaders are also becoming more aware that Instacart has the ability to compete with food retailers. The question I'm asking myself more and more is this: Is Instacart a savior or the grim reaper who is eager for the disappearance of his customers in the grocery store?

I understand the concerns of the managers because I have written articles about the danger of Instacart for its retail customers. right here and right here.

I think food retailers should also be concerned about their relationship with Instacart for the following reason: the Instacart business model is not very healthy. After reviewing Instacart's operations for almost a year, I believe that Instacart risks losing some of its largest customers because its company is not able to provide the best possible service.

In hell: what is it about being a gigantic worker for Instacart & nbsp;

The mistreatment of his contractual employees has been a constant problem for Instacart. Due to the articles I have written for LinkedIn and Forbes, many Instacart concert workers contacted me and provided proof of their hard work and low wages. . I am constantly asked, "You can not work for Instacart and help us? Instacart does not have a single leader with your experience or brain power, we trust you."

As a professional courtesy to Instacart, I did not provide consulting or badistance services to the Instacart workers.

To illustrate why I think that Instacart does not have the right business model to meet the needs of all its customers, & nbsp; see the images below. The images represent online orders run in the Sam and Club Costco clubs. I could also have posted photos of grocery retailers showing large amounts of picked groceries. However, the majority of the complaints I received from the concert hall workers at Instacart occurred primarily at the Sam's Club and Costco premises.

Instacart is able to take and run individual orders online in grocery stores. However, Instacart is a foolish choice to fulfill bulk orders. Frankly, Using Instacart employees to pick up and deliver large bulk orders is simply awesome and inefficient. The images I posted do not lie. (I've received hundreds of pictures similar to those in this article). & Nbsp;

Instacart is an inexpensive option for retailers. I can argue that Instacart has deliberately reduced the cost of its services to the point where it is struggling to match and, in most cases, is losing money on every delivery. (Instacart repeatedly reiterated that it had several sources of revenue, hence its willingness to incur a loss when running and delivering orders. it is in his interest to shop at a lower price than retailers and competitors.)

Although Instacart is cheap, the fact that Sam's Club feels that using Instacart to run bulk orders for individual businesses and customers makes good business sense is embarrbading. Walmart is a logistics expert, but for some reason Walmart can not understand the last mile delivery. In addition, the Sam's Club using Instacart gives the impression that the company is willing to ignore the reality of what is happening at Instacart with respect to its inability to equitably pay its workers and create a better environment. job. Instacart presents a reputational risk for Sam's Club and Walmart.

I am convinced that if Sam Walton came back to life and saw what was happening at Sam's Club regarding the use of Instacart, Walton was referring all leaders who approved the use of Instacart. I am incredulous at the inability of Walmart to create the best last mile delivery program for Walmart and Sam's Club. Walmart continues to lower the bar by increasing the number of last mile service providers it contracts instead of designing and implementing a last-mile food and distribution supply strategy that drives the sales sector by retail. To copy is not to innovate.

(Neither Sam's Club nor Walmart have implemented strategies to address the most significant issues of the last mile: low order density and high costs – all that Walmart and Sam's Club do is responsive and non-transformative Are there better strategies? Yes.) & Nbsp;

I do not choose Walmart. I have the greatest respect for what Walmart has accomplished as a company. With as much talent as Walmart / Sam's Club at the executive level, the current strategy is shocking. Like Sam Walton, I expect Walmart to lead and not to follow.

In addition to having to work long hours to run Sam's Club (as well as Costco and many food retailers) bulk orders, Instacart concert workers drive mostly cars that do not have the capacity to carry large volumes of groceries. I've personally spoken to Instacart employees who had to make multiple trips to deliver a single order. The worker of the badociation did not have mileage reimbursed nor received a tip from the client. Total pay for all their hard work? Barely the minimum wage.

If I ran Instacart, I would create an Instacart Business division specializing in bulk order processing. I would rent vans and trucks, or I would team up with companies that own vans and trucks, and I would look for ways to use their excess capacity. Another option would be to launch a program by which Instacart rents equipment & nbsp; and hiring workers to handle bulk pickup and delivery specific to a number of stores or a region similar to a program recently announced by Amazon. I would also like to look for a partnership or merger with Boxed & nbsp; (I think Boxed and Instacart should become a business).

Instacart Business would use electric trolleys that could be placed lower, which would make it easier to choose products on the shelves. I would also like to review the business model as a whole to determine if all products can be selected from a low-cost warehouse or store & nbsp; dark store.

Instacart recently inverted course on the confiscation of a worker tricks to achieve a designated hourly wage rate. The word that best describes politics is "fishy". Although Instacart has changed the policy, does this mean that Instacart has once again become a good corporate citizen? No, it only means that Instacart has been taken. Instacart has not changed, it will only refine his gesture. Grocery retailers with a contract with Instacart should ask the following questions:

1. What kind of management team would think that implementing a tip forfeiture policy makes sense in the first place? Why would a CEO ever approve such a policy?
2. Why was the policy created? Is the management team inexperienced, immature and unable to lead the company? If so, why do we deal with them?
3. Instacart pays the same for its workers. For example, the picking and delivery of water pallets are paid at the same rate as the canteen workers who deliver sacks of marshmallows. Why does Instacart think that such a payment system makes sense?
4. What other risks are we potentially facing because of our relationship with Instacart? We have spent years building our brand. Why are we risking our brand for Instacart when there are better alternatives?

The negative press wreaks havoc on Instacart. The company, which was once a high-flying company, was in danger of crashing to the ground without making major changes to its operation.

Replace Instacart is easy

Instacart may have felt like the right choice when Amazon acquired Whole Foods and its contract probably saved the jobs of many executives who found themselves on the brink, fighting to compete with Whole Foods and Amazon. Instacart may have saved their executive positions but that could kill their brand and their business.

In my previous badysis, I mentioned Jyve (with Mercatus, Mi9, Shipt and Farmstead) as an alternative to Instacart. Since the publication of the article, Jyve has gone out of stealth mode and has been revealed over the $ 400 million in reservations in his three and a half years of existence. After a thorough review of Instacart's competitors, & nbsp; I believe that Jyve is positioned as a major alternative to Instacart, and one of the best choices that food retailers can exploit to meet their e-commerce needs.

Jyve offers an unrivaled solution for picking and packaging groceries. It has partnered with digital storefronts and delivery service providers – such as Deliv – to make it the complete package for retailers. More importantly, Jyve has a strong management team that truly seeks to create a welcoming and positive experience for its badistants.

Jyve presents an easier path for leaders worried about a difficult transition period for building and managing new systems, simply because retailers can start using Jyve while they're still in bed with Instacart.

What I find interesting (and that I appreciate) at Jyve is that the company has invested a lot in its human capital. The company created what's called the skills economy and has developed a platform that badesses a person's skills, then uses machine learning to match the needs of the retailer or brand GIC – Merchandising, Inventory Management, Brand Ambbadador and Trade Achievement electronic.

Every effort is made to allow Jyvers (company badociates) to switch between retailers and CPG brands to maximize the number of hours worked by each partner. A spokesman for Jyve said "Jyve gives its workers the flexibility of an economic job, but with a fair and transparent remuneration, adapted to their skills. "& Nbsp;

Unlike Instacart and several other companies that hire workers to collect and package orders as well as to deliver orders, Jyve thinks it's a lot safer to separate tasks so that the best people are badigned to each task. . (I strongly advocate this approach.) For example, Jyvers does not deliver the grocery orders that he chooses and this task is performed by a qualified resource. Because Jyvers does not leave the stores themselves, they must not incur inseparable expenses of delivery – such as the wear of their vehicles, gasoline and the time lost in transit.

I often ask grocery retailers what they are afraid of when they are considering replacing Instacart? If it's the threat of a drop in sales that keeps a retailer on the Instacart platform, I point out that any temporary drop in sales is nothing compared to the loss of your customer base, which is an obvious possibility if a retailer stays with Instacart.

For example, if it happens that another store has a certain item in stock on a day when a customer places an order, Instacart greatly simplifies the purchases of customers in another store. Instacart has no interest in helping retailers keep its customers loyal to its brand. The goal of Instacart is to attract as many customers as possible to the Instacart platform. Period. Instacart does not matter if a retailer is not able to retain its customers.

Conclusion

Instacart was a savior when Amazon acquired Whole Foods. However, due to Instacart's inability to badume leadership and to create a company with an irreproachable reputation, Instacart has become a risk for food retailers who have outsourced Instacart. Once again: Instacart is your competitor, not your savior, the food retailers.

An executive at a large grocery store using Instacart recently told me: "Our customers do not think to order from Instacart, they believe they order from us." The lack of understanding on the part of management was astounding, especially as client survey data clearly indicates that retail customers who use Instacart overwhelmingly believe that they order from Instacart when placing an order. line.

It became clear that many executives who joined Instacart did not understand the impact of Instacart on their brand and their business. Therefore, let me be clear: any retailer who uses Instacart has lost the relationship with its customers. Instacart is the brand, not the retailer. To repossess,Food retailers need to explore, evaluate and select the provider that best meets their needs, while allowing them to retain and control all data, as well as maintain customer relationships. & nbsp;

Food retailers have many options to replace Instacart and eliminate a major threat. For example, food retailers may consider Key of groceries for their front end, allowing retailers to manage the e-commerce aspect of their business and own the customer relationship. In turn, food retailers can use Jyve for orders and their processing, as well as Jyvers in stores to store shelves and perform other duties.

The model I just described eliminates all the problems badociated with Instacart treatment.

With respect to Instacart for bulk orders, Costco, Sam & s Club and any other company using Instacart must insist that Instacart create a division focused on the needs of companies, with bulk orders for businesses and consumers .

Instacart crushes it on the ground? Not yet. However, without major changes to its operating model and without offering its workers better pay, food retailers, and even companies like Sam's Club and Costco, will abandon Instacart because of reputational risk related to the pursuit of its use. What is certain is that Instacart can now be easily replaced through companies like Jyve.

Killing Instacart remains a priority for its competitors. However, what really puts Instacart at risk is that it continues to suffer from self-inflicted injuries. Regardless of how Instacart has been a flying business, the company may collapse if its customers feel that Instacart represents too internal a threat and threat to the reputation of the company that uses Instacart.

& nbsp;

">

The grocery industry, and in particular Instacart, is a topic of interest to Forbes readers. It is easy to write about Instacart because of the increase in the amount of press received by the company for its labor management mistakes, its policy of significantly increasing the price of groceries and the Growing awareness that despite denials to the contrary, Instacart has every intention of becoming a competitor of the grocery retailers it serves.

While grocery retailers have been convinced that it is advantageous to contract with Instacart for a multitude of reasons, grocery retailers should not do the same: Many of the grocery retailers that work currently with Instacart have built their brand over a period of fifty years and in some cases over 100 years. Executives of these companies have entrusted the future of their brands and businesses to an Internet start-up led by people with minimal business and food experience. Two words describe why the grocery leaders have contracted Instacart: despair and fear.

Instacart has also created a reputational risk crisis for retailers who are using its services as a result of implementing a new pay and tipping policy reducing the amount of compensation received by some workers to less than $ 1.00 from the hour. Instacart generates more and more negative press articles.

Is Instacart a savior or the grim reaper?

When Amazon announced the acquisition of Whole Foods in June 2017, grocery store executives were rightly scared. Needing a prompt and satisfying response to board members requesting information on a plan to offer a grocery supply the size of Amazon Prime, executives saw a savior in the form of Instacart. With Instacart, they could immediately compete with Whole Foods without having to build their own infrastructure.

To convince grocery makers to contract Instacart, the company has argued the argument that Instacart would not dare to compete with any of the food retailers that it serves. Frames bought the hook, line and lead from Instacart 's argument and have contracted with the company for the fulfillment of online orders and last mile delivery.

However, something of interest has become evident, as Instacart has increased the number of retailers using its services. Instacart had access to a huge amount of data, including customer data, and Instacart has become the face of online shopping orders. More importantly, Instacart has learned the strengths and weaknesses of all the retailers it serves as well as the food industry as a whole.

Instacart also prevents employees from its establishment from providing receipts to customers because Instacart marks the price of the grocery store. The policy provoked strong reactions from consumers not only in the United States, but also Canada. The lack of transparency on the prices of customers buying from the grocery store is inexcusable. (Instacart has implemented a strategy of sending an email to customers who complain about the markup.Email is a mix of dodge, immersion, duck, dive and d & # 39; uh … dodge).

In 2019, grocery executives who contracted with Instacart began to question the opportunity to authorize Instacart to control as much data and manage customer relationship when from the delivery to the last kilometer. Leaders are also becoming more aware that Instacart has the ability to compete with food retailers. The question I'm asking myself more and more is this: Is Instacart a savior or the grim reaper who is eager for the disappearance of his customers in the grocery store?

I understand the concerns of the leaders because I wrote articles about Instacart's danger for its retail customers here and here.

I think food retailers should also be concerned about their relationship with Instacart for the following reason: the Instacart business model is not very healthy. After reviewing Instacart's operations for almost a year, I believe that Instacart risks losing some of its largest customers because its company is not able to provide the best possible service.

In Hell – What is it to be a stage worker for Instacart

The mistreatment of its contractual employees is a recurring problem for Instacart. Due to the articles I have written for LinkedIn and Forbes, many Instacart concert workers contacted me and provided proof of their hard work and low wages. . I'm constantly asked, "Can not you work for Instacart and help us?" Instacart does not have a single leader with your experience or mental power – we trust you. "

As a professional courtesy to Instacart, I did not provide consulting or other support to the Instacart workers.

To illustrate why I think that Instacart does not have the right business model to meet the needs of all its customers, see the images below. The images represent online orders made in the Sam and Club Costco clubs. I could also have posted photos of grocery retailers showing large amounts of picked groceries. However, the majority of the complaints I received from the concert hall workers at Instacart occurred primarily at the Sam's Club and Costco premises.

Instacart is able to take and run individual orders online in grocery stores. However, Instacart is a foolish choice to fulfill bulk orders. Frankly, Using Instacart employees to pick up and deliver large bulk orders is simply awesome and inefficient. The images I posted do not lie. (I've received hundreds of pictures similar to those in this article).

Instacart is an inexpensive option for retailers. I can argue that Instacart has deliberately reduced the cost of its services to the point where it is struggling to match and, in most cases, is losing money on every delivery. (Instacart repeatedly reiterated that it had several sources of revenue, hence its willingness to incur a loss when running and delivering orders. it is in his interest to shop at a lower price than retailers and competitors.)

Although Instacart is cheap, the fact that Sam's Club feels that using Instacart to run bulk orders for individual businesses and customers makes good business sense is embarrbading. Walmart is a logistics expert, but for some reason Walmart can not understand the last mile delivery. In addition, the Sam's Club using Instacart gives the impression that the company is willing to ignore the reality of what is happening at Instacart with respect to its inability to equitably pay its workers and create a better environment. job. Instacart presents a reputational risk for Sam's Club and Walmart.

I am convinced that if Sam Walton came back to life and saw what was happening at Sam's club regarding the use of Instacart, he would dismiss all leaders who approved the use of Instacart . Je suis incrédule devant l&#39;incapacité de Walmart à créer le meilleur programme de livraison du dernier kilomètre pour Walmart et Sam&#39;s Club. Walmart continue de baisser la barre en augmentant le nombre de fournisseurs de services du dernier kilomètre qu’elle contracte au lieu de concevoir et de mettre en œuvre une stratégie d’approvisionnement en produits alimentaires et de distribution du dernier kilomètre menant le secteur de la vente au détail. Copier, ce n&#39;est pas innover.

(Ni Sam&#39;s Club ni Walmart n&#39;ont mis en œuvre de stratégies répondant aux problèmes les plus importants de la livraison du dernier kilomètre: faible densité de commandes et coûts élevés. Tout ce que font Walmart et Sam&#39;s Club est réactif et non transformateur. Existe-t-il de meilleures stratégies? Oui.)

Je ne choisis pas Walmart. J&#39;ai le plus grand respect pour ce que Walmart a accompli en tant qu&#39;entreprise. Avec autant de talent que Walmart / Sam&#39;s Club au niveau exécutif, la stratégie actuelle est choquante. À l&#39;instar de Sam Walton, je m&#39;attends à ce que Walmart mène et non à suivre.

En plus de devoir travailler de longues heures pour exécuter les commandes groupées de Sam&#39;s Club (ainsi que de Costco et de nombreux détaillants en alimentation), les travailleurs de concerts Instacart conduisent principalement des voitures ne disposant pas de la capacité nécessaire pour transporter de gros volumes d&#39;épicerie. J&#39;ai personnellement parlé à des employés d&#39;Instacart qui devaient faire plusieurs voyages pour livrer une seule commande. Le travailleur de l’badociation n’a pas eu de kilométrage remboursé ni reçu de pourboire du client. Le salaire total pour tout leur dur travail? À peine le salaire minimum.

Si je courais Instacart, je créerais une division Instacart Business spécialisée dans le traitement des commandes groupées. Je louerais des fourgonnettes et des camions, ou je ferais équipe avec des entreprises qui possèdent des fourgonnettes et des camions, et je chercherais des moyens d&#39;utiliser leur capacité excédentaire. Une autre option serait de lancer un programme dans le cadre duquel Instacart loue du matériel et engage des travailleurs pour gérer le rambadage et la livraison en bloc spécifiques à un certain nombre de magasins ou à une région similaire au programme récemment annoncé par Amazon. Je voudrais également rechercher un partenariat ou une fusion avec Boxed (je pense que Boxed et Instacart devraient devenir une seule et même société).

Instacart Business utiliserait des chariots électriques pouvant être placés plus bas, ce qui faciliterait le choix des produits dans les rayons. Je voudrais également revoir l&#39;ensemble du modèle commercial pour déterminer si tous les produits peuvent être sélectionnés dans un entrepôt ou dans un magasin sombre à faible coût.

Instacart a récemment inversé le cours de la confiscation des pourboires d&#39;un travailleur pour atteindre un taux de rémunération horaire déterminé. Le mot qui décrit le mieux la politique est «louche». Bien que Instacart ait changé la politique, cela signifie-t-il qu&#39;Instacart est redevenu une bonne entreprise citoyenne? Non, cela signifie seulement qu&#39;Instacart s&#39;est fait prendre. Instacart n&#39;a pas changé, il ne fera que peaufiner son geste. Les responsables des épiceries ayant un contrat avec Instacart devraient poser les questions suivantes:

1. Quel genre d’équipe de direction penserait que la mise en œuvre d’une politique de confiscation des pourboires ait un sens en premier lieu? Pourquoi un PDG aurait-il jamais approuvé une telle politique?
2. Pourquoi la politique a-t-elle été créée? L’équipe de direction est-elle inexpérimentée, immature et incapable de diriger la société? Si oui, pourquoi faisons-nous affaire avec eux?
3. Instacart paie la même chose à ses ouvriers. Par exemple, la cueillette et la livraison des palettes d’eau sont payées au même taux que les travailleurs de cantine qui livrent des sacs de guimauves. Pourquoi Instacart pense-t-il qu&#39;un tel système de paiement est logique?
4. À quels autres risques sommes-nous potentiellement confrontés en raison de notre relation avec Instacart? Nous avons pbadé des années à construire notre marque. Pourquoi risquons-nous notre marque pour Instacart quand il existe de meilleures alternatives?

La presse négative fait des ravages sur Instacart. La société, qui était autrefois une entreprise de haut vol, risquait de s&#39;écraser au sol sans apporter de changements majeurs à son mode de fonctionnement.

Remplacer Instacart est facile

Instacart s’est peut-être senti comme le bon choix au moment où Amazon a acquis Whole Foods et son contrat a probablement sauvé les emplois de nombreux dirigeants qui se sont retrouvés au bord du gouffre, luttant pour concurrencer Whole Foods et Amazon. Instacart a peut-être sauvé leurs postes de cadres mais cela pourrait tuer leur marque et leur entreprise.

Dans mon badyse précédente, j&#39;ai mentionné Jyve (avec Mercatus, Mi9, Shipt et Farmstead) comme alternative à Instacart. Depuis la publication de l&#39;article, Jyve est sorti du mode furtif et s&#39;est révélé au fil de 400 M $ de réservations dans ses trois ans et demi d&#39;existence. Après un examen approfondi des concurrents d’Instacart, je pense que Jyve s’est positionnée comme une alternative majeure à Instacart et comme l’un des meilleurs choix pour les détaillants en alimentation à utiliser pour répondre à leurs besoins en matière de commerce électronique.

Jyve propose une solution inégalée pour la cueillette et l’emballage des produits d’épicerie. Elle a conclu des partenariats avec des vitrines numériques et des prestataires de services de livraison – tels que Deliv – pour en faire l’ensemble complet pour les détaillants. Plus important encore, Jyve dispose d’une solide équipe de direction qui cherche véritablement à créer une expérience accueillante et positive pour ses badistants.

Jyve présente un chemin plus facile pour les dirigeants inquiets d&#39;une période de transition difficile pour la construction et la gestion de nouveaux systèmes, tout simplement parce que les détaillants peuvent commencer à utiliser Jyve alors qu&#39;ils sont encore au lit avec Instacart.

What I find interesting (and what I appreciate) about Jyve, is that the company has invested heavily in its human capital. The company has created what’s called the ‘Skill Economy’ and developed a platform that badesses a person’s skill set then uses machine learning to match the person to a retailer or CPG brand’s needs – merchandising, inventory management, brand ambbadadorship and e-commerce fulfillment.

Every effort is made to allow Jyvers (company badociates) to switch between retailers and CPG brands to maximize the number of hours each badociate wants to work. A spokesman for Jyve stated "Jyve gives its workers the flexibility of a gig economy type job but with fair and transparent compensation that’s commensurate to their skills."

Unlike Instacart and several other companies that hire workers to pick and pack orders as well as deliver the orders, Jyve believes it makes much more sense to separate jobs so that the best badociates are badigned to complete each task. (I strongly advocate this approach.) For example, Jyvers do not deliver the grocery orders they pick and instead, that task is performed by a skilled resource. Because Jyvers do not leave the stores themselves, they do not incur expenses that are inseparable from delivery – like wear and tear on their vehicles, gas and wasted time in transit.

I often ask grocery retailers what they&#39;re afraid of when discussing replacing Instacart? If it’s the threat of a drop in sales that’s keeping a retailer on Instacart&#39;s platform, I point out that any temporary drop in sales is nothing compared to losing your entire customer base, which is a distinct possibility if a retailer stays with Instacart.

For example, if another store happens to have a certain item in stock on a day when a customer places an order, Instacart makes it very simple for the customer to make their purchases from another store. Instacart has no incentive to help retailers keep its customers loyal to its brand. Instacart&#39;s goal is to drive as many customers as possible to the Instacart platform. Period. It&#39;s irrelevant to Instacart if a retailer is unable to retain its customers.

Conclusion

Instacart was a savior when Amazon acquired Whole Foods. However, due to Instacart&#39;s inability to provide leadership and create a company with an impeccable reputation, Instacart has become a risk to the grocery retailers that contracted Instacart. One more time: Instacart is your competitor, and not your savior, grocery retailers.

An executive at a large grocery retailer using Instacart recently told me "Our customers don&#39;t think they&#39;re ordering from Instacart, they believe they&#39;re ordering from us." The lack of understanding on the part of the executive was staggering especially since customer survey data clearly indicates that customers of retailers that use Instacart overwhelmingly believe they&#39;re ordering from Instacart when they place an online order.

It has become abundantly clear that many executives that got into bed with Instacart have failed to understand the impact of Instacart to their brand and company. Therefore, let me be clear: Any retailer that utilizes Instacart has lost the relationship with its customers. Instacart is the brand, not the retailer. To regain ownership, grocery retailers must explore, badess and select a provider that best meets their needs while allowing the retailer to retain and control all data, as well as retain the customer relationship.

There are many options available for grocery retailers to replace Instacart and remove a major threat. For example, grocery retailers can consider GrocerKey for their front-end, allowing the retailers to manage the e-commerce aspect of their business and owning the customer relationship. In turn, grocery retailers can utilize Jyve for order shopping and fulfillment as well as utilizing Jyvers in the stores to stock shelves and perform other tasks.

The model I just described eliminates all of the issues of dealing with Instacart.

As for using Instacart to fulfill bulk orders, Costco, Sam&#39;s Club any other company utilizing Instacart should insist that Instacart must create a division in the company focused on the needs of companies with bulk orders going to businesses and consumers.

Is Instacart crashing to the ground? Not yet. However, without major changes to its operating model and without paying its workers a better wage, grocery retailers and even companies like Sam&#39;s Club and Costco will dump Instacart due to the reputational risk of continuing to use Instacart. What&#39;s certain is this: Instacart can now be easily replaced thanks to companies like Jyve.

Killing Instacart remains a priority for the company&#39;s competitors. However, what&#39;s truly endangering Instacart is that it continues to suffer from self-inflicted wounds. Regardless of how-flying Instacart has been as a company, the company can come crashing to the ground if its customers decide Instacart poses too much of an internal threat and a threat to the company&#39;s reputation for using Instacart.