Delivery drivers angered as Instacart reduces base pay

Delivery drivers angered as Instacart reduces base pay

(NewsNation) — The grocery delivery service Instacart has reduced its base pay from $7 per order to $4. Those who fill the orders say that this decrease means they will rely more on tips.

Instacart announced the change in a July 20 post on its website. The post states that smaller, quicker orders now pay at least $4, while other orders pay at least $10.

After the announcement, delivery drivers expressed their concerns on social media. Some called for a boycott of all $4 batches, while others lamented the need to accept four small orders to make minimum wage.

In an email to NewsNation, Instacart stated that “not all orders are created equal,” and the change hasn’t affected driver availability.

According to Instacart, the company’s earning structure has remained the same since 2019. The company also noted that, in addition to weekly shopping, customers now use the app for “much smaller convenience or specialty item orders” alongside larger requests. Some larger orders are placed when families stock up for the month or when small businesses order office supplies.

Unlike some similar services, Instacart allows drivers to reject any batch without facing penalties.

However, Instacart workers are not the only ones frustrated with their wages. Drivers for other shopping services are also advocating for higher pay.

In New York City, app-based delivery workers were set to earn almost $18 an hour earlier this month, but lawsuits by Uber, DoorDash, and GrubHub temporarily prevented the implementation of the new rules.

Delivery services like Instacart and DoorDash became household staples for many people during the height of the COVID-19 pandemic, as going to grocery stores presented a higher risk. In 2020, Instacart saw a 104% increase in revenue, making $2.1 billion and representing a 39% increase from the previous year, according to Business of Apps.

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