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Update: With the $2 scheduled delivery discount gone in many parts of the country, this is only getting worse.

It’s a disappointing week for New York City delivery customers, especially for Chase cardholders who rely on their monthly Instacart credits.

If you’ve noticed your “$10/$20 off” doesn’t seem to make a dent in your bill anymore, you aren’t imagining things. Due to new legislation regarding delivery worker minimum pay, Instacart has rolled out a massive Regulatory Response Fee in NYC, plus an increased service fee that sees most stores jumping from a $2.49 minimum to $3.50.

The New “General Rule” for NYC Shoppers

For years, the smart play was using your monthly credit for small, quick orders. That strategy is now effectively dead.

The new rule of thumb is simple: Your credit no longer buys you groceries; it just pays the delivery taxes.

How the Fees Stack Up

We analyzed the new fee structures across major retailers like Costco, Walgreens, and Home Depot. Regardless of where you shop, the new fees swallow a big chunk or nearly the entire value of your benefit.

• The Regulatory Fee: Starts around $5.99 for standard orders, but can spike to $9.99 if you order from a store further away (that’s in addition to the long-distance fee!).
• The Service Fee: Now typically carries a minimum of $3.50/6% instead of $2.49/7% at most stores.

But interestingly, they’ve added a $0 tip option and clearly mentioned it’s optional as they now get paid fairly due to NYC law.

The “Value” Breakdown

We crunched the numbers so you don’t have to. Here is what that $10 monthly credit is actually worth in the new system:

The “Coupon” Illusion

Right now, you might see a banner at checkout promising a “$10/$20 credit.” Don’t let it fool you.

Under these new rules, this isn’t a perk; it’s a shield. You aren’t getting $10 off your goods; you are just getting a coupon that wipes out the new surcharges. If you order from a store that is far away, that credit might not even cover the fees, meaning you are paying out of pocket just for the privilege of using the service.

The Verdict: Delivery vs. Pickup

The era of the “free lunch” delivered to your door is officially over in NYC. The math simply doesn’t work for small delivery orders anymore.

Pro Tip: If you want to keep the full value of your Chase card, switch your order to Pickup. As of now, the regulatory fees apply to delivery only, letting you bypass the surcharge and actually spend your credit on food, but besides the extra hassle, some stores don’t allow pickup. Maybe just use it on a trip outside NYC?

What do you think about the new changes?
Is it just the city’s fault, or is Instacart also taking advantage?