1. Channel: Delivery

Instacart To Launch Its Own Credit Card

Grocery delivery company Instacart announced this morning that it will partner with Chase to offer an Instacart-branded credit card that will offer accelerated points on purchases made using the card for purchases in the Instacart system.

The card reportedly will be made available to consumers later this year.

The announcement says that “the new Instacart Mastercard credit card will be the first Chase co-branded card offering in the on-demand grocery delivery space. The card will allow consumers to earn accelerated points on purchases across the Instacart marketplace, which today includes more than 700 beloved national, regional and local grocers and retailers. The card is expected to launch in 2022 and will also offer a number of other benefits, perks and savings.”

The company goes on:  “The new co-branded card expands the current relationship between Chase and Instacart. Since June 2020, the companies have worked together to provide limited-time Instacart offers and savings to existing Chase cardmembers. Chase and Instacart are currently offering eligible Chase cardmembers a free Instacart Express membership and $10 off their next order of $35 or more, through April 30, 2022. Instacart Express membership provides unlimited free deliveries and reduced service fees on all orders $35 or more. More details on this limited time offer and full terms are available here. Eligible cardmembers can sign up through January 31, 2022.”

KC’s View:

Sure, why not.  Because Instacart doesn’t have enough information about what its users are buying from its client retailers, some of whom may have their own credit cards that could be replaced by Instacart’s entry.

Let’s be clear.  Everything – and I mean freakin’ everything – that Instacart does is to reinforce consumers’ loyalty to Instacart, to build up its own brand, to drive revenue to its bottom line, and to position Instacart for a likely IPO that will make some folks really, really rich … but that is built on a foundation of retailer relationships that are worth less and less with every bit or byte of information about customers that Instacart is able to glean.

At a certain point, Instacart simply won’t need retailers anymore … it’ll have the customers, the vendor relationships, and the financial infrastructure to simply do business on its own.

The post Instacart To Launch Its Own Credit Card appeared first on MNB.

View Original Article
Do you like MorningNewsBeat's articles? Follow on social!
Comments to: Instacart To Launch Its Own Credit Card