Ever since we announced that we’re going to make changes to our shopper payment model, we’ve heard some misconceptions that we want to address.
#1. 100% of tips have and will continue to go to the shoppers.
Ever since we started collecting tips online, we have passed 100% of the tips to shoppers.
Starting mid October, we will not be collecting tips online. Instead, we will be collecting a service amount, which will be used to pay shoppers.
#2. 100% of this service amount will be used to pay shoppers. Instacart will not keep any of it.
We noticed that about 20% of the customers did not tip at all. And, around 40% of the customers tipping provided very small tips (~ $2). This was a problem because shoppers were reliant on tips as a major source of pay. At Instacart, we believe that shoppers should not have to rely on tips and instead just make fair, guaranteed and predictable pay. So, we decided to change that.
Here is what the before and after looks like for shopper pay in San Francisco:
| San Francisco Shopper Pay for 10/17 | Pay Before the change |
Guaranteed Pay After the change |
| Shopper picking & delivering 15 items | $11.25 + tips | $17.25 |
| Delivery driver doing 4 deliveries | $6 + tips | $32 |
Additionally, our top 25% of shoppers will receive a $100 weekly bonus based on 5 star ratings. We will also continue to pay them extra for large orders, long distances, and other cases.
So what does this mean for shopper pay? It will vary by market, of course – but in San Francisco, this will provide shoppers with a way to earn $15-20+/hour on their own schedule. This is in range with what we see in the market for other comparable jobs.
Finally, we are always learning and iterating on our model. And, we want to hear from you. We have and are continuing to hold lots of office hours to discuss this in detail. Please contact shoppers@instacart.com if you’d like to attend.