Instacart is paying workers about the same to do 2-3 orders at a time as it does for one order as demand rises during the pandemic, interviews and receipts show
Dina W. did her last job for Instacart on March 20. Before the coronavirus outbreak, Dina could easily avoid doing …
Los Angeles TimesJohana Bhuiyan
Context & Ripple Effects
The pay squeeze Dina W. walked away from on March 20 is not new for Instacart — sources reported back in 2016 that the company cut courier commissions by half and dropped per-drop-off fees to $1.50 in SF and LA. What changed with the pandemic is that surging demand let Instacart compress pay further without losing throughput: batching two or three orders into one trip at roughly single-order rates means each shopper effectively works more for the same fee.
The timing matters because this is the exact window when Instacart scaled hardest — it went on to add 300K shoppers in eight weeks and post its first-ever monthly profit of $10M in April, while separately extending COVID-19 sick pay and planning another 250K hires. Batched payouts are one of the levers that made that profitability possible.
First-order effects
Shoppers like Dina W. see their effective hourly earnings fall as batches bundle 2-3 orders at near-single-order pay, pushing the most experienced workers to quit precisely when demand peaks.
Second-order effects
Instacart's aggressive shopper recruitment — 300K added in eight weeks, plus plans for 250K more and extended sick pay — functions partly as replacement hiring for workers churning out over batched pay, converting a retention problem into a recruiting cost.
Third-order effects
If the pattern holds, batching-at-flat-rates becomes a structural margin lever for gig delivery platforms: unit economics improve by densifying each paid trip rather than raising per-order rates, which sharpens the worker-classification and pay-transparency fights around gig work.
The trend: On-demand delivery platforms are meeting demand surges by increasing the work extracted per payout — batching orders at flat rates — rather than by paying more per order.
NEW: Instacart workers have seen spikes in demand but say the “pay doesn't add up,” Interviews w/ workers & receipts we reviewed show they're paid about the same to do 2-3 orders at a time as they are for 1 order, despite the extra time & labor required https://www.latimes.com/..…
Tip-baiting is a sick, twisted way for people to abuse some of the most vulnerable members of our society. Instacart should fix this immediately by making it impossible — or at least a lot harder — for customers to reduce tips post-delivery. https://www.cnn.com/...
Instacart's shoppers and drivers say they are risking their health and working longer hours than ever before, with little to show for it. @JMBooyah reports: https://www.latimes.com/...
The pandemic holds up a mirror. We find out a lot about what works, what doesn't, what matters, what doesn't, and what some people really are. https://twitter.com/...
This is a level of sickness I can't comprehend. And it's especially cruel during this time. “People are luring Instacart shoppers with big tips — and then changing them to zero.” https://www.cnn.com/...
I repeat: Tip them generously, please. Also, why doesn't Amazon Fresh have any shoppers or drivers? Because they have no times for two weeks now. Done with them. https://twitter.com/...
Don't be fucking human trash like this. They're risking their health & lives for your sorry asses. Pay them, fuckers. People are luring Instacart shoppers with big tips — and then changing them to zero https://www.cnn.com/...
At the end of 2018, Instacart showed shoppers the customers tip upfront. Because the base pay was so low, shoppers couldn't afford to accept orders with zero to low tips, so customers' orders wouldn't get filled. When customers complained, Instacart told them to tip bait. https:/…
If you've wondering why Instacart workers are mad enough to go on strike, or whether it's ethical to ask them to deliver your groceries during a pandemic, or what they really get paid, this @JMBooyah piece is an absolute must-read. https://www.latimes.com/...
Who even thinks of this like wtf my mind doesn't even operate this way. I have been overtipping my delivery drivers because I know they are dealing with a lot of jerks right now while putting their health at risk. https://twitter.com/...
Anyone who does this needs to be publicly shamed and blacklisted from online delivery services. These are bad people, not desperate people. Instacart also bears a lot of fault for enabling abuse of their delivery workers. https://www.cnn.com/...
This is so appalling and pathetic. We did a large tip and our shopper went above and beyond and was so kind when she delivered we went back in and raised it above 20%. You should only be allowed to raise the tip amount not lower after an order is placed. https://twitter.com/...