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Instacart grocery delivery service raises prices

Citing the cost of improving its services, along with a changing market, the San Francisco-based startup will soon start charging more to deliver groceries to your door.

Instacart's surrogate-shopper and grocery-delivery service is raising its prices starting January 4.
P. Deliss/Godong/Corbis

Being a couch potato just got more expensive.

Instacart, a grocery delivery startup that's become one of the key companies in the quickly expanding field of on-demand shopping, is raising its prices. The San Francisco-based firm made the announcement today in a blog post, citing the cost of improving services amid a changing market.

Effective January 4, Instacart's two-hour delivery service will start at $5.99, up from $3.99. If you'd rather spend a flat fee per year to enjoy free two-hour delivery on orders $35 and up through Instacart Express, you'll need to pay $149, up from $99.

Last January, Instacart raised $220 million in venture capital from big backers including Andreessen Horowitz, Khosla Ventures and Kleiner Perkins Caulfield & Byers. Instacart now offers its delivery services in 18 US cities.

The price jump comes several months after Instacart announced it would begin rolling out part-time employment benefits to its employees amid heightened regulatory scrutiny of the emerging on-demand economy. Instacart also recently partnered with Target to begin offering on-demand grocery delivery in the major retailer's hometown of Minneapolis.

Instacart representatives did not respond to a request for comment.

CNET's Ian Sherr contributed to this report.