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Instacart shoppers say they'd rather quit and work for McDonald's or DoorDash after the company slashed their minimum order pay from $7 to $4

Aug 2, 2023, 14:04 IST
Business Insider
Instacart workers say shopping and delivering orders isn't worth the money after the company cut their base pay.Photo by Michael Loccisano/Getty Images
  • Instacart shoppers are considering leaving the platform after it cut base pay for filling orders.
  • Some say that delivering restaurant orders, which doesn't require shopping, makes more sense.
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Some Instacart workers are questioning whether shopping in a store, standing in a checkout line, and driving to customers' houses is worth it after the company cut their pay, according to social media posts, emails, and interviews with five workers.

Last week, Instacart started paying its gig workers as little as $4 in base pay per order, Insider reported on Monday. Previously, the company paid at least $7. Base pay is an amount that Instacart shoppers and drivers are guaranteed to make if they accept an order, though they can earn more from customer tips.

Now, many shoppers are coming to a conclusion: Working for Instacart probably isn't worth it anymore.

Daniel Danker, Instacart's chief product officer, told Insider that the company pays "guaranteed batch earnings that are 2x higher than other app-based companies."

But shoppers point out that many Instacart orders aren't just about driving groceries or other retail goods to customers: They also involve navigating grocery stores and communicating with customers about second choices when items are out of stock.

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Some workers said in the wake of the base pay cut that delivering restaurant orders for a service like DoorDash makes more financial sense. In a TikTok video posted last week, one worker shows an order for 11 items that involved driving 1.6 miles but had base pay of $6.30 and no tip.

"You know I don't complain about this stuff," he says. "But $6? To shop for nine items? And DoorDash pays the same amount for not even that much effort? C'mon, man."

On a Reddit page for Instacart shoppers, some workers say a traditional job is starting to look more appealing. "I was making $30/hour for 2 years with InstaCart," one post reads. "Now I'm literally making $17. McDonalds is paying more."

Lower base pay is just the latest challenge for Instacart shoppers. Workers have told Insider that they've noticed more people trying to claim orders on the app. Over the last two years, Instacart has also told shoppers that they're more likely to get orders if they wait near stores. That's led some to wait in parking lots, sometimes for hours, just to find an order that's worth their time.

Alexia Hudson, who shops and delivers orders around Charlotte, North Carolina, told Insider that she started working for Instacart after losing her job early in the pandemic. Initially, the pay was good enough that she made working for Instacart a replacement for her 9-to-5 job. "I don't have to call nobody and ask for PTO," she said. "It was pretty convenient."

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But after the cut to base pay, plus competition to claim the highest-earning orders in her area, she decided to start looking for a traditional job again. Other gig options, like Walmart's Spark or Amazon Flex, don't pay enough either, she said. "I've tried all of them, and I was like 'No, I can't do this.'"

Are you an Instacart worker with a story idea or interesting perspective to share? Reach out to this reporter at abitter@insider.com or via encrypted messaging app Signal at 808-854-4501.

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