If "service fee" was renamed "instacart fee", people would no longer assume it is the driver's tip. But instacart would never do that, would they?
I’m a “full-service shopper” in a zone without any in-store teams, meaning that I do the shopping and the delivering. Since I’ve started, I have only seen the order commissions steadily deteriorate to the point that they are now about half of what they used to be a year ago.
I can assure you and anyone else reading that the so-called service fee is not going to any of us in the field. And many customers have stopped tipping assuming that the service fee is a tip.
There's no reason why grocery store employees cannot fill orders - in fact grocery stores that do their own deliveries do exactly that. What those grocery stores lack is a platform to synchronize active inventory in a store and what is displayed which is exactly what Amazon brings to Whole Foods in addition to "intelligent" order routing:
There are three whole foods in Manhattan that are convenient to downtown - however, during the rush our one needs to be an idiot to send an order to the one on 7th Ave rather than the one in Tribeca, which is definitely not the case during the late afternoon.
What really amazes me is that both executives and people who work for companies like Instacart simply stomp their feet and say "But we are different! Why do you hate us?!" rather than address deficiency of the business model. Want to have a shot at competing with AmazonWF? Become a sub of Ahold, Kroger, Albertsons or SuperValu. Otherwise you die.
P.S. I dislike Amazon. I do, however, have to admit that buying WF was a brilliant move.