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Correction: Same-Day Grocery Delivery story

NEW YORK (AP) — In a story June 19 about same-day grocery delivery companies, The Associated Press reported erroneously that prices charged by the Instacart delivery service are influenced by the company’s relationship with retailers. Instacart says that it independently determines its prices.

A corrected version of the story is below:

Ditch the supermarket: These 3 companies deliver

Hate the grocery? These 3 companies deliver groceries without going to the store

By JOSEPH PISANI

AP Business Writer

NEW YORK (AP) — If you dread making supermarket runs, you’re in luck.

Same-day grocery delivery services from Google, Instacart and Postmates are expanding into more cities around the country, delivering everything from cereal to bottled water to toilet paper from nearby stores.

I tried out all three services, and they’re fast, easy to use and way more convenient than waiting in the checkout line. All three deliver from local stores as well as some big national chains, such as Whole Foods, Costco and Target.

The services are different from more established grocery delivery companies such as FreshDirect, Peapod and AmazonFresh, because they don’t actually sell groceries directly to you. Google Shopping Express, Instacart and Postmates merely send someone to stores in your neighborhood. It works like this: You select what you want online or on an app, choose a delivery time and the service will deliver the items to your door.

But convenience comes at a price. The delivery charges can vary greatly. Google and Instacart offer flat rates, while Postmates’ fees depend on the distance of the delivery. And you may want to tip the delivery people. All three companies say it’s not necessary, but Instacart and Postmates allows you to add a tip while shopping on the app or website.

Besides delivery costs, Instacart charges a premium for items from some of the stores it delivers from. That means you will end up paying a lot more than if you walked over to the shop and bought it yourself.

Another downside: getting your groceries delivered means you may be missing out on using coupons or browsing for cheaper alternatives in the store. And the orders do not always go according to plan. If an item is sold out, the delivery person will call you to figure out what to do next.

Before ordering, run an Internet search to see any coupon codes are available. I found discounts or free delivery offers for all three.

Here’s how the services measured up:

GOOGLE SHOPPING EXPRESS

Items listed on Google’s service match those of the stores it works with. That’s because Google shares in the profits. The biggest downside is that the company doesn’t deliver meats, fish, fruits and other perishable groceries yet, even though it delivers from stores that sell them, including Target, Fairway and Costco. (You need to have a membership to order from Costco.) Google says it is working on a way to sell perishables in the future.

All the items I ordered were available in the store, and they were wrapped up nicely too. My delivery came in bags with the Google Shopping Express logo, and my two glass bottles of sparkling water were wrapped and taped in paper to prevent them from breaking.

The company goes beyond groceries to deliver TVs, pots, air conditioners and other items. I ended up turning to Google Shopping Express again to buy a last-minute Father’s Day gift.

DELIVERY FEES: $4.99 for each delivery. It’s currently offering six-months of free deliveries to new users. It plans to offer a membership plan for free deliveries, but hasn’t come up with pricing yet.

DELIVERY AREAS: Available in four cities: Los Angeles, New York, San Francisco and San Jose. It also makes overnight deliveries in parts of Northern California.

INSTACART

For my first order with Instacart, I selected items from Whole Foods. I ordered clams, which I was nervous about. I like to select them myself to make sure they’re not cracked or dead. But the two dozen I ordered came in perfect condition. Instacart manager Aditya Shah says the company’s staff is trained to pick out the freshest fruits, vegetables and other perishable foods.

Two items I wanted were sold out. The delivery person called to see if I wanted replacements, but I missed the call. Instacart automatically took the two unavailable items off my bill.

The five items I bought from Whole Foods were the same price as in the store. But that’s not always the case. When I compared Instacart’s prices on items from another local supermarket, they were a lot higher than the in-store prices. Instacart charged 67 percent more for a container of cream cheese and 40 percent more for a jar of strawberry jelly. Shah says that Instacart’s prices are decided on its own and vary by store and category, and take into account the commission paid to delivery people.

One benefit: You can order from Costco even if you don’t have a membership for the warehouse club.

DELIVERY FEES: Two-hour deliveries are $3.99. One-hour deliveries are $14.99. If you pay $99 a year for an Instacart Plus membership, all two-hour deliveries over $35 are free.

DELIVERY AREAS: Available in 10 cities: Austin, Boston, Chicago, Los Angeles, New York, Philadelphia, San Francisco, San Jose, Seattle and Washington D.C.

POSTMATES

This service was the most personable. After I made an order through the app, I received a picture of the delivery person and his phone number. The packaged salami I wanted was sold out. But the delivery person called and got some from the store’s deli instead.

One item was wrong. I was delivered a Greek yogurt with 2 percent fat instead of the fat free one I wanted. The company says it offers refunds on case-by-case basis and that I could email customer service. I didn’t bother, it was the same brand I wanted, and not that big of a deal.

The delivery person also emailed me a picture of the receipt. The yogurt and salami turned out to be cheaper in the store than the Postmates app initially estimated, and the app charged me the lower prices.

Besides groceries, the company delivers from local restaurants, drugstores and even fast food joints.

DELIVERY FEES: Start at $5 and are determined by distance. In addition, a 9 percent service fee is also charged.

DELIVERY AREAS: Available in seven cities: Austin, Chicago, Los Angeles, New York, San Francisco, Seattle and Washington D.C.

___

ONLINE:

— Google Express Shopping: https://www.google.com/shopping/express/

— Instacart: https://www.instacart.com/

— Postmates: https://postmates.com/

_____

Follow Joseph Pisani at http://twitter.com/josephpisani

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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