Instacart and its competitors engage in conflict commerce by underpaying drivers and shifting labor costs onto customers.
This business model mirrors tactics seen in other industries, such as airlines charging extra for seats and retailers understaffing to create customer competition.
Leaders are challenged to question if conflict commerce is a sign that their core product lacks value and to focus on building something customers truly want.
To address this issue, companies should stop creating customer-vs-customer friction, identify operational shortcomings, and work towards eliminating tensions in the customer experience.