Is Instacart a Scam?

If you’re thinking of using Instacart, you need to know whether it’s safe. Is Instacart a scam? 

Below, we explain whether Instacart is a scam and discuss some steps you can take to improve your safety when using this service. 

What Is Instacart?

Instacart is a grocery‑delivery and pickup service that connects customers with personal shoppers for same‑day orders. 

You can use it to make online orders from supermarkets, pharmacies, and big‑box chains.

Customers choose a retailer storefront to shop from, and shoppers pick, pack, and deliver or prepare for pickup.

The service started in San Francisco in 2012 and has expanded across the US and Canada. 

Is Instacart a Scam?

No, Instacart is not a scam. It’s a real company with millions of customers. 

That said, scammers and rogue shoppers can exploit the platform, so shoppers must remain vigilant.

Instacart has been reviewed by several third-party publications. 

For example, a Business Insider reviewer found Instacart “quick and effortless” but concluded that frequent tipping makes it expensive. A review on the Clark Howard website and Healthline concluded similarly. 

User reviews of Instacart are mixed at the time of writing:

• 4.6 out of 5.0 stars (from 488 reviews) on Google. 
• 1.2 out of 5.0 stars (from 11,225 reviews) on Trustpilot.
• 1.2 out of 5.0 stars (from 1,095 reviews) on Consumer Affairs. 
• 1.06 out of 5.0 stars (from 972 reviews) on the Better Business Bureau. 
• 1.1 out of 5.0 stars (from 60 reviews) on REVIEWS.io.
• 4.1 out of 5.0 stars (from 46 reviews) on Capterra. 

Some customers praise helpful, polite shoppers as well as the speed and care with packaging.

Others complain about the quality of goods chosen (or incorrect products), delivery issues and delays, unresponsive shoppers, and fees. 

On online forums like Reddit, people share mixed experiences with Instacart. 

One person said:

“The fees are the worst part, pretty much. And the convenience is addictive.”

However, several people complain that the additional costs (e.g., taxes, delivery fees) can make the service expensive.

One person noted: 

“I found instacart deceptive and expensive; like, the prices may be “okay”, but then factor in the tax, delivery fee, heavy item fee, tip, some other random fees.. you have to be making a very large order for it to work out at all.” 

In its terms and conditions, Instacart notes that it can change and vary fees (delivery, service, shipping, long distance, regulatory, bag, special handling, etc.) and that retailers set prices, which may differ from in-store or other platforms and may vary by storefront (i.e., prices shown may not be the lowest available). 

Others also note that the experience can depend heavily on the shopper you get:

“Ive used it extensively and it’s nice and convenient but it HEAVILY depends on your shopper. You’ll quickly find your shoppers that your happy to see pop up, and other who will make you roll your eyes everytime you get them.”

You can cancel or request refunds, but after shopping starts, it may cost you or might not be allowed.

If Instacart thinks someone is misusing the system, it can cancel your order, deny or take back refunds, charge your saved payment method, remove discounts, promo credits, or perks, and take other actions to protect itself. 

Instacart is not currently a Better Business Bureau (BBB) accredited business, but holds an “A+” rating. BBB ratings take into account customer complaints, transparency, and a company’s responsiveness to customers. 

At the time of writing, the service has received a total of 8,351 complaints on the BBB website over the last 3 years, 2,849 of which were closed in the past 12 months. 

Instacart scams

There have been several cases of Instacart shoppers accused of scamming customers.

In one case, for example, a shopper in Ohio allegedly overcharged or failed to deliver items to more than 100 customers. 

Victims were reimbursed, and a spokesperson for Instacart said the company runs background checks on potential shoppers and severs ties with those that engage in fraudulent activity. 

However, it’s not just Instacart customers who are getting scammed. Instacart shoppers are being targeted by fraudsters, too.

For instance, one scam involves scammers posing as Instacart customers, asking shoppers to add high-value gift cards to small orders and send the card codes before checkout, then denying the purchase after the funds are spent. 

Regulatory actions and lawsuits

In August 2022, the Attorney General of Washington D.C., announced a $2.54 million settlement with Instacart over allegations that involved the company supposedly misleading customers by describing its service fee as a “tip.”

The complaint said Instacart kept the fee instead of passing it to workers. 

Instacart did not admit wrongdoing but agreed to pay restitution and change its disclosures.

Instacart security

In its privacy policy, Instacart briefly describes its security controls.

It says it employs and maintains “reasonable administrative, physical, and technical measures” to protect your personal information. 

For Personal Health Information, it uses “systems and processes consistent with information privacy and security requirements under applicable federal and state laws.” 

In 2020, it was reported that thousands of Instacart account users’ information was being sold on the dark web, including names, addresses, partial credit card details, and order histories. 

Instacart stated that its systems were not directly breached and attributed the incidents to credential stuffing and phishing, where attackers reused passwords stolen from other sites to log into Instacart accounts.

Instacart privacy 

Instacart describes the kinds of data it collects, for what purposes, and with whom it shares it in its privacy policy.

It collects the following personal information:

• Contact information: Name, phone number, and email address.
• Account information: Username and password. 
• Order information: Delivery address, date and time of your order, items you ordered, and any special instructions.
• Age and identity verification information: Information from your government IDD if you order age- or dollar amount-restricted items. 
• Vehicle information: Vehicle license plate number for curbside pickup orders.
• Payment information: Billing address and method of payment. 
• Fresh Funds information: Fresh Funds partner name, Fresh Funds balance, and the products you bought with Fresh Funds.
• Interactions with your personal shopper: Information within those communications. 
• Information you make public on the Services: For example, sharing a recipe.
• Other information you provide: Such as survey responses and customer service communications.
• Information you provide about others: For example, a friend referral and the information linked to that.
• Browser and activity information: Including products you engage with or place in your cart, pages you visit, and how often you interact with Instacart. 
• Device information: Information about the device you use to connect to Instacart. 
• Location information: Information about your device’s location.
• Cookies, pixels, and other tracking technologies: Used to make the services function, personalization, and similar. 
• Information from third parties. Including third-party services, retailers, business partners, law enforcement, and publicly available sources, among others. 

It uses this data to run and deliver services, process orders, and provide customer support. It also uses it for marketing and interest-based ads, personalization of experience (including recommendations, coupons, and ads), improving services, fraud prevention, security, legal compliance, and community outreach. 

Instacart may share your information with affiliates and subsidiaries, service providers, advertising and marketing partners, retailers (for order prep, loyalty programs, and legal requirements like alcohol sales), and personal shoppers.

It may also share your data with restaurant partners (for restaurant orders), Fresh Funds program partners (if used), government/legal authorities (when required), and in business transactions (i.e., sale, merger, or bankruptcy). Plus, with your consent or if you publish anything publicly on Instacart.

If you use Instacart to deliver prescriptions, the service will receive some health information from the pharmacy and must protect it under HIPAA. Instacart can only share your health data in specific allowed situations.

For prescription orders, some communications may be unencrypted SMS/push notifications, and you waive related liability claims against Instacart and third-party providers, as per its terms and conditions. 

Instacart supports global privacy signals, such as GPC, where applicable.

The service keeps your information only for as long as necessary for service or legal reasons. Your data may be stored and processed outside your country and be subject to foreign government access laws.

Depending on where you reside, you may have certain privacy rights, such as the right to access, correct, and delete your data, and to opt out of targeted ads and the sale of your information. 

So, Should You Use Instacart?

Probably. 

If you value convenience, need grocery delivery from multiple retailers, and can afford service fees, you will likely find the service worthwhile. 

On the other hand, if you live near stores, are sensitive to fees, or worry about tipping costs, you might prefer shopping in person or using a retailer’s own delivery service. 

How to Use Instacart Safely and Privately 

• Limit what you share. Avoid putting extra personal details in “special instructions” to personal shoppers. 
• Use a strong password. And don’t reuse it on your other online accounts.
• Be careful with public/shared features. Assume anything you post publicly can be seen by others. 
• Control location data. Instacart collects your location via your device and IP address. On your phone, set location to “While using the app” instead of “Always,” if your OS allows, and turn off precise location if you don’t need hyper-accurate results.
• Opt out of marketing and tracking. Turn off as many marketing and promotional emails, SMS, and push notifications as you can.
• Take advantage of GPC. Use a browser that supports Global Privacy Control (GPC) and turn it on. Instacart says it respects GPC. 
• Protect your payment details and orders. Use a credit card instead of a debit card if possible (they tend to have better fraud protection in many places). 
• Opt out where you can. If you reside in a place with stronger privacy laws (like certain US states, California, Nevada, or Canada), exercise your privacy rights (e.g., access your data, delete your data, etc.)