Instacart, the grocery delivery service that promised to bring convenience to our doorsteps, recently turned into a source of immense frustration due to an appalling customer service experience. While occasional glitches are understandable in the world of online services, the level of incompetence and disregard I encountered with Instacart’s customer support was truly exceptional, and not in a good way. This experience has made me seriously question whether to continue using their service, and raises concerns for anyone considering investing in their upcoming IPO.
From Minor Annoyance to Outright Anger with Instacart Support
Like many, I turned to Instacart during the pandemic for grocery deliveries, and it has remained a convenient option, especially with my shift work schedule. While minor issues like item replacements or out-of-stock notifications are part of the online grocery shopping experience, they were usually manageable. As an Instacart+ member, the service often seemed worthwhile, even for smaller, more specific orders.
On this particular occasion, my order hinged on one key item: generic diet soda from Aldi. This wasn’t just a “nice-to-have” item; it was the primary reason for placing the order. According to the Federal Trade Commission’s definition of “material,” this item was absolutely central to my purchasing decision. Instacart’s website confidently displayed the soda as “many in stock,” which sealed the deal. The price was also a significant factor, being half that of brand-name alternatives.
Trusting the website’s inventory information, I proceeded with my order, specifically selecting the generic diet soda along with a few other items. However, upon checking my order status after a shower, I was met with a notification that the shopper had refunded the soda, citing it as out of stock.
Instacart Refund Notification
This immediately raised a red flag. I contacted the shopper to double-check and revisited Instacart’s website. To my surprise, the website still indicated “many in stock” for the same item. Even as I write this, the website persists in showing the item as available. This blatant discrepancy prompted me to contact Instacart customer service to understand the cause of this misinformation. This simple inquiry unfortunately spiraled into a customer service debacle.
The Customer Service Runaround: Blame Games and Disconnects
Instacart’s core value proposition is built on convenience – paying a premium for a hassle-free grocery shopping experience. When the fundamental reason for placing an order – the availability of a specific item clearly advertised on their platform – turns out to be false, it directly undermines this value proposition.
My initial interaction with Instacart customer support began via chat. The first representative I spoke with immediately deflected responsibility, blaming the store for the stock discrepancy. This “it’s the store’s fault” narrative became a recurring theme throughout my subsequent interactions with Instacart support. The offered “resolution” was simply to “escalate” the issue, a vague promise of future action that felt inadequate and dismissive, especially after being misled by their website’s inventory status. Having just experienced a direct contradiction from Instacart’s platform, trusting in an undefined “escalation” process felt more like a brush-off than a genuine attempt to resolve my issue.
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The situation quickly deteriorated. While still in the chat, I requested the representative to remain connected while I reviewed the rest of my delivered order. Despite this clear request, the representative promptly transferred me to another agent and disconnected the chat. The second representative, seemingly unaware of the previous conversation, required me to reiterate the entire issue: “I have an issue with Instacart saying that a SPECIFIC item that was a key part of my order had ‘many in stock’ — both before and AFTER the shopper said there were NONE in stock.”
Instead of addressing my concern, this agent also immediately transferred me to a third representative, who then abruptly terminated the entire chat session.
Instacart Chat Ended
Frustrated by the chat support experience, I resorted to calling Instacart customer service directly.
It’s noteworthy that while Instacart readily informs customers that calls may be recorded, implying it’s for quality assurance, their representatives became noticeably uncomfortable when I mentioned that I would also be recording the conversation for my own records. This apparent double standard regarding call recording is quite telling.
During the phone call, I detailed the entire situation to the representative, “Toby,” emphasizing my growing frustration with being disconnected during the chat and the overall poor customer service. Toby, mirroring the previous chat representatives, also attempted to absolve Instacart of any responsibility for the website’s inventory listings, insisting that these listings were solely the responsibility of the individual stores.
I directly questioned Toby, asking if Instacart’s official position was that the website’s inventory information might be inaccurate and unreliable. While Toby denied this outright, he immediately reverted to the same deflection, stating that item availability was outside Instacart’s control and that substitutions were offered as a solution.
The Bait and Switch Tactic: Is Instacart Misleading Customers?
It’s crucial to dissect this consistent response from Instacart customer service. Across multiple interactions, representatives repeatedly asserted that Instacart bears no responsibility for the accuracy of product availability displayed on their website, placing the blame squarely on the supermarkets.
However, this stance conveniently ignores a fundamental aspect of the transaction: I made a purchase from Instacart, not directly from the supermarket. Advertising a low-priced item as readily available to entice customers, only to then offer more expensive substitutions when the advertised item is unavailable, strongly resembles the classic “bait and switch” tactic.
According to the Corporate Finance Institute, bait and switch is defined as:
Bait and switch is a fraudulent activity whereby a company advertises goods at an incredibly low price with the aim of substituting for them with inferior or pricier alternatives at the time of purchase … instead of getting the item initially advertised – the item that “baited” them to come and shop, the company attempts to do a switch and sell the consumer an entirely different product. In many instances, the item the retailer is trying to sell is either of inferior quality or more expensive than the advertised product. Either way, it is an act of fraud that is punishable in a court of law.
Unfortunately, once the customer visits the store, he is confronted with … [t]he tablet or other advertised product is out of stock, but the customer is informed that other, similar options are available – for a higher price.
The FTC’s definition of deceptive advertising further reinforces this concern:
According to the FTC’s Deception Policy Statement, an ad is deceptive if it contains a statement – or omits information – that:
- Is likely to mislead consumers acting reasonably under the circumstances; and
- Is “material” – that is, important to a consumer’s decision to buy or use the product.
Returning to my conversation with Toby, I directly asked what Instacart intended to do to retain me as a customer, given my intention to cancel my Instacart+ subscription. The response remained unchanged: the only offered resolution was to trust Instacart to address the issue “in the future.” This vague reassurance was insufficient to address the immediate problem or rebuild any lost customer trust.
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The situation then took another turn for the worse. When I requested to cancel my subscription and receive a prorated refund for the remaining nine months (approximately $75), I was transferred to yet another representative. This representative informed me that a refund was not possible. They could cancel my subscription, but I would forfeit the remaining value. Being asked to pay for a canceled service is simply unacceptable.
Expressing my intention to escalate the issue further during weekday business hours in hopes of reaching someone with more authority, the representative – who repeatedly interrupted and spoke over me – abruptly hung up the phone. This final act of blatant disrespect cemented my negative perception of Instacart’s customer service.
A Missed Opportunity for Customer Loyalty
It’s crucial to understand that this entire situation could have been easily avoided and even turned into a positive customer service story with minimal effort. If Instacart had provided competent and empathetic customer service, this article would have been very different.
Back in 2007, I wrote an article for an advertising magazine highlighting Amazon’s exceptional customer service. While Amazon has since faced criticism regarding worker conditions, their past focus on customer satisfaction significantly contributed to their success. As I noted in that article:
It is not just common sense that a customer’s trust is good for business. In 2001, a study was published in the International Journal of Service Industry Management. That study showed that customers who trusted a company not only think more favorably about it, but they began to talk about that company to their friends. Customer trust leads to both future sales and honest word-of-mouth advertising.
In my case, a simple gesture – offering a small credit, a partial refund, or even a sincere apology – could have diffused the situation and potentially strengthened my loyalty to Instacart. Something as minimal as “We apologize for the inconvenience, here’s a $16 credit for your next soda order,” or honoring the prorated subscription refund request, would have been sufficient.
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Instead, Instacart’s rigid policies and abysmal customer service have transformed me from a paying subscriber into a vocal critic, questioning the company’s long-term viability in an increasingly competitive market.
The Bigger Picture: Is Instacart’s Customer Service a Sign of Deeper Issues?
The fact that this entire ordeal revolves around a relatively small sum of money ($75 subscription refund) underscores the absurdity of the situation. There is no logical reason for Instacart to handle this so poorly, unless it stems from either extreme arrogance or a desperate financial situation where even $75 matters to a multi-billion dollar corporation.
Instacart, founded a decade ago, reported an annual revenue of $1.8 billion in 2021. Under the leadership of CEO Fidji Simo and COO Asha Sharma, the company has experienced significant growth, with revenues jumping over 50% in the final quarter of 2022 and gross profit climbing over 80%, according to internal memos reported by the Wall Street Journal in February. Full-year revenue for 2022 reportedly rose to around $2.5 billion, with $29 billion in overall sales processed, a 16% increase from 2021. Despite delaying its IPO in 2022, Instacart is still considering going public in 2023.
For a company built on the premise of convenience and exceptional customer service, one would expect that resolving a $75 refund request – a minuscule 0.003% of their $2.5 billion revenue – would be a trivial matter.
Instead, Instacart’s policies and disastrous customer service have alienated a previously satisfied customer, prompting me to share this detailed account of their failures, from the misleading website information to the rigid customer service scripts and the refusal to offer prorated refunds. Chief Marketing Officer Laura Jones should seriously re-evaluate these customer service strategies.
It’s highly improbable that my experience is unique. More likely, it represents a systemic issue within Instacart’s customer service, and I am simply one of the few publicly documenting it. This experience should serve as a cautionary tale for consumers, potential investors, and even Instacart’s own leadership.
Based on this deeply negative customer service encounter, I strongly advise caution when considering giving Instacart your money, whether as a customer or an investor.
