Instacart has launched a new Fizz app aimed at Gen Z users. While the Instacart app is geared to food delivery, Fizz is all about booze and snacks. The company says it incorporates a number of features specifically geared to a younger demographic.
However, it may have run into an issue with the name – see the update at the bottom of the piece …
Bloomberg reports that the company sees it as a complementary app intended to serve a different audience.
Instacart is launching a new, Gen-Z focused app for group orders of drinks and party snacks, expanding its core delivery business beyond grocery hauls […]
The push to attract price-conscious younger users is another step by Instacart to diversify beyond its typical demographic of suburban shoppers who tend to place weekly big-basket orders.
It’s not just that Gen Z is more likely to want drinks and snacks over traditional groceries – there are several features specifically geared to younger customers:
- More affordable delivery fee of $5 (versus $8)
- Snack Bucks allowing alcohol brands to offer discounts on snacks
- A partnership with the Partiful app
The latter lets users create an event and then add a link for group orders of drinks and snacks.
Instacart wants to serve a younger audience today, but also sees them as creating a funnel into the main app as they get older.
Daniel Danker, Instacart’s chief product officer, said in an interview that the company is trying to cater to a use case that is “completely underserved.” He said the company is trying to “deliver value for people” and that Fizz will be complementary to Instacart. Younger users may start off by using Fizz and then eventually use Instacart as their “lives evolve,” he said.
Recently, Instacart cut the minimum spend to $10 from $35 for paid subscribers to get free delivery, a lever that upped engagement.
Fizz will be competing with DoorDash and Uber Eats, both of whom also offer alcohol delivery.
However, an existing company using the same name has filed a lawsuit for trademark infringement:
Fizz, the rapidly-growing Gen Z social media company that has been operating under that name since early 2022, has just filed a lawsuit against both Instacart and Partiful for trademark infringement and deliberately exploiting Fizz’s established reputation as a known and beloved social platform for Gen Z on 400+ college campuses.
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