There’s nothing like stating the obvious: The gig economy has been turned upside-down these past few months. Most drivers prefer carrying passengers over doing deliveries, mainly because passenger rides are more lucrative and easier to come by. Delivering food involves parking, getting in and out of the car, carrying sometimes heavy loads, possibly spilling potent-smelling foodstuffs in your nice, clean car, and after all that … not getting much money. Before COVID-19, most drivers weren’t all that excited to work for delivery companies because they didn’t have to. But now, everything is different.
The big gig shift
There’s still a lot of fear over COVID-19 and all the risks associated with its spread. That, combined with government stay-at-home and shelter-in-place orders, has decimated much of the driving business. While we certainly expect that the day will come when people resume going to and from work, then out to dinner, drinks, and/or large events, right now driving is a very sporadic and challenging way to generate income.
Where are our passengers? Most of them are at home, either working from there or furloughed from their jobs. Whereas they once ran their own errands and did their own shopping, they’re now willing to pay for the privilege of staying huddled in their houses—which means they’re shelling out extra money to get their purchases delivered. And they’re tipping pretty well, too.
This situation makes working for delivery services much more attractive than it was when driving passengers was profitable. The restaurants our riders used to frequent are now takeout only. The bars where they met their friends after work are shuttered. So, people are looking for ways to get their favorite foods and beverages delivered to their homes.
This shift in customer activity has done more than just make delivery companies seem more attractive than before. It’s created a business boom for these companies, as well as a demand for more gig workers to keep their machinery moving. One in particular is making a splash due to an immense amount of expansion: Instacart.
An app-based service for grocery, pharmacy, and pet-supply shopping, Instacart has hired more than 300,000 shoppers and delivery drivers in the last few months alone, and plans to hire 250,000 more. Just like the coronavirus itself, no one saw the staggering demand for new workers coming. Even Instacart didn’t anticipate this level of growth. In an April 2020 interview, Instacart president Nilam Ganenthiran said that because of the coronavirus pandemic, “Every day is a new Black Friday for us.”
When every day feels like the busiest shopping day of the year, you know there are employment opportunities galore at Instacart. There are a few different ways you can work for the company. You can shop and then deliver, pick up and deliver only, or simply be a shopper. This flexibility might make it easier for rideshare drivers to adjust to working for an outfit like Instacart.
What about Instacart worker safety?
It’s pretty obvious why customers (including our past and future riders) enjoy getting their groceries and other items delivered; it’s always convenient to use a service like this one. But with the COVID-19 scare it has become, quite literally, a life-saver. The main reason people use this shopping service so much and so often is they don’t want to go into the stores and risk being infected with the coronavirus.
One of the difficulties Instacart has faced recently is directly related to worker safety. After making recent promises to provide hand sanitizer and other safety equipment to their drivers, they were unable to deliver the goods. Drivers and shoppers also felt let down in other ways too, and they were unhappy with Instacart’s response to their demands. So, in late March 2020, Instacart workers went on strike.
Although the company didn’t meet all demands, they did take measures to help protect the shoppers and drivers who work for them. They have instituted safety programs, and even worked with a third-party manufacturer to create their own line of hand sanitizer. They began providing safety kits to all workers that contain a reusable cotton mask, a thermometer, and hand sanitizer.
Another safety precaution implemented in April 2020 involves shoppers and drivers participating in mandatory wellness checks before starting work. They take an in-app survey about whether they’re having any COVID-19 symptoms such as fever, coughing, or shortness of breath. If they have no symptoms, they can begin their day’s work. But if they do have symptoms, they’ll be temporarily deactivated and told to call their doctor.
While this is a step in the right direction, there’s no guarantee workers will be honest about that fever or nagging cough, and the app can’t take workers’ temperatures—not yet, anyway. Still, it probably does comfort shoppers and their customers to know these precautionary measures are in place.
Is working for Instacart worth it?
Until the rideshare business comes back, most drivers need to consider other ways to make money. As long as you’re healthy, and don’t have any high-risk considerations to factor in, a job like this one might work out for you. Sure, unemployment is available for gig workers during the COVID-19 crisis, but we’ve heard from many drivers who say they’re facing long and frustrating delays.
What are the risks with COVID-19 and beyond?
Once the novel coronavirus is finally under control and the “all-clear” sounds, the economy will inevitably be different. Will rideshare come back to the way it was before the coronavirus crisis? Maybe, maybe not. If it doesn’t, it would be a good idea to have a Plan B in place, like working for Instacart to back you up and supplement your income.
The other side of the after-COVID equation is whether Instacart’s services will still be in demand when the fear of catching the viral disease dies down. It’s hard to know for sure—but our research tells us that people have grown fond of having someone else do their grocery shopping, so the demand for this service is likely to remain strong.
It’s a huge timesaver, and many people consider it well worth the extra money Instacart tacks on for its fee. The ebb and flow of economic trends seems to indicate business may not be as brisk as it is right now, but it will probably remain much stronger than it was before the outbreak.
What about money?
Feedback on working for Instacart is mixed. There are many reports of big tippers. There are also complaints that people put the big tip on the order, and then remove it just as it’s been completed. Drivers left holding the bag are stuck with the average $15 per delivery. Those who get big tips, however, can make as much as $25.
Just as with rideshare, delivery pay will vary according to the market where you work. Your take will be bigger in more densely populated areas, and you’ll make more at certain times of the day. Also remember that if you decide to be a full-fledged shopper, you’ll be spending time inside the store, standing in line to get in and to get checked out, on top of driving there and delivering the items to the customer.
Overall, if you can make some money, that’s preferable to making NO money while you sit and wait for the rideshare business to pick up again. Right?
Is Instacart for you?
Once you’ve binged yourself numb on TV series and old movies, you could come to the point where you either want or need to get out of your house and get to work for a service like Instacart.
So here’s a link to help you get started. When the future is uncertain, it’s always a good idea to keep your options open. And remember—with Gridwise, you can track your earnings, as well as your rideshare stats, right on the app. Download it now!
