Instacart, with an eye toward boosting customer loyalty in a crowded grocery delivery space, will launch its own credit card, the Instacart Mastercard, in partnership with Chase.
Chase, in a news release, said the card is expected to launch later this year. It will offer what Chase called "accelerated points" for purchases made on the Instacart Marketplace as well as other yet-to-be-announced benefits. More than 700 national, regional and local grocers and other retailers offer online ordering through Instacart.
"With the new Instacart credit card, we'll be able to deliver even more ways for customers to save as they shop and make Instacart the most affordable way for people across North America to get the food they want, from the retailers they love, delivered faster than ever before," Instacart COO Asha Sharma said in the release.
The credit-card offering expands on Instacart's 19-month-old relationship with Chase; currently, eligible Chase cardmembers can get a free Instacart Express membership and $10 off an order of $35 or more.
Instacart has felt the pressure of a growing number of grocery-delivery options for U.S. consumers: Results of a grocery loyalty survey last fall from investment bank Barclays found 7% of U.S. shoppers expressing loyalty to Instacart—down from 16% in 2019. (In comparison, 29% professed loyalty to a favorite grocer.) Additionally, 26% of respondents to Barclays' survey said they were using Instacart less than they were six months ago.
The delivery provider in November rolled out a number of new features, including a Deals tab, a Dollar Store Hub, exclusive savings for Express members and reduced-cost delivery options, in a bid to keep—or lure back—increasingly price-conscious consumers.