Instacart has a PR problem

The pressures of the quickly evolving grocery industry has pushed a plethora of grocers into the arms of Instacart. But what grocers might not realize is that they are risking the outlook of their brands when choosing to contract a partnership with this grocery delivery company.

According to Forbes Contributor Brittain Ladd, grocery executives have turned to Instacart out of desperation and fear. However, the company has seemed to create more of a reputational risk crisis for retailers that use its services, due to its implementation of paying some workers less than $1 per hour and accumulating negative press stories.

This has resulted in grocery executives questioning the wisdom of allowing Instacart to manage its last-mile delivery, as well as oversee company data.

Ladd believes grocery retailers have a right to be concerned with their partnerships with Instacart, due to its unsound business model – which has the potential of losing a grocers most loyal customers by not properly executing its delivery services.

To read the Forbes article, click here.