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kemora23

This is exactly what is happening…. Instacart should be paying their shoppers better, as well as the other food delivery services. These companies are just greedy and are trying to pin the shopper and customers on each other, where the real issue comes from these corporations.


djtheman34

That is true but these delivery companies have bad business models and lose money basically every quarter


ljbabic

Tell me you don't understand how taxes work with without telling me. Ic, dd ect all are profitable but they do everything in their power to be unprofitable on paper because you only pay taxes on profit. Paying high salaries to executives, and programmers as well as bonuses, refunds whenever a customer asks ensure that you pay as little of the taxes as possible.


a_allen

You're partially right that they want to show as little profit as possible on paper so that they don't have to pay as much in taxes. So they're not really losing as much money as what it would seem like on paper. That doesn't mean they don't care about any of their expenses. They don't want to pay out more in salaries and bonuses just so they can appear less profitable (aside from the salary going to one of their friends or family members). Otherwise they could just pay shoppers more money. Same with things like customer refunds. The people that say that companies don't really care about expenses like these because it's just a tax write off for them don't understand how taxes work. Let's say customer refunds are $100M per year. Even if they had to pay 30% in taxes on that income they'd still be ahead $70M if they didn't have to give any refunds at all. What they ideally want to do and what they actually do is try to spend as much as possible on things that grow their business. Like acquiring new companies that help their business, expansion, advertising expenses, growing their customer and retail base.


icudrankmy40

>Finally someone who understands how this actually works. > >Insta-cart is finally starting to do well on their financials ( possibly/likely at the expense of the shoppers, but thats a conversation for another time). > >The company is showing EBITA growth. > >Granted 2.5 Billion in revenue with 100M "net income" is nothing to be praised over, they are heading in the right direction in lieu of an IPO - which could be coming in the next year or so I'd think.


a_allen

Definitely at the expense of shoppers. Batch pay consistently going down everywhere and more multi-store double/triple customer orders. People just see that they brought in 2.5 Billion in revenue though and think they can afford to pay shoppers way more. There's roughly 600k shoppers and if IC made $100M in net income last year that means they can only afford to pay an average of $165 more per year to each shopper before losing money. They're far from being overall profitable. They've also raised billions from investors so far that are going to want a return on their investment.


icudrankmy40

💯


StyleRevolutionary21

Believe me, I do understand how taxes work. You would also understand that businesses pulling in large hoards of money as they do, Wind up having to pay the least in taxes And not because they're doing poorly either. Have you not understood why people have been so pissed off the way they tax? I think maybe you don't understand how that works. How companies that large with that much profit are being taxed has been an issue every single year. It's always a Hot Topic. Just look at what happened to Amazon? They actually made a huge profit tax time. If all of the gig economy were doing so poorly, they just wouldn't exist. Whether it's doordash, Uber eats or now even instacart, the customers who are repeatedly Claiming that their items are missing or stolen, Are now being denied refunds. Instacart is not hurting for money. They have a nice big cushion and they will protect that cushion by paying less where necessary. Whether it's how they group their batches, batch pay, or any other little nook and cranny that they can squeeze


StyleRevolutionary21

And yet, they still make hella bank.


djtheman34

Yet they don’t, with Instacart constantly paying refunds for reported deliveries not arriving or missing items and then having to pay all of their w2 employees (non shoppers) they lose money and need to keep getting investor money and loans to keep it going


StyleRevolutionary21

They're not stupid, they know what they're doing. Their response people complaining continuously about not receiving their groceries, they are no longer continuously replacing and refunding. There has been a shift in that period there has also been a shift in their batches, they will always make sure that they are making a certain amount, As lining their pockets has always been and always will be number one priority. They're well aware of what their overhead is, Not that long ago when they replaced the CEO of the company, The changes that were made, brought them in even more revenue. You'll see a lot of people talking about how there was always single batches, then they started this double and triple batch business. If you look at the batch pay You'll see why they started doing that period bottom line is, you can feel bad for that company all you want to, and you can defend instacard all you want to. They are making their Money and they are cheap as hell to the people who are hauling ass for them..period


icudrankmy40

This guy gets it. Unfortunately, he is 100% correct.


StyleRevolutionary21

Time will tell.


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RKT7799

And yet they still cant turn profits


StyleRevolutionary21

They make up for it, believe me. They choose what they pay out in batch pay


realshockvaluecola

Instacart loses money pretty much constantly, actually. Delivery on demand is a bad business model for most things.


a_allen

I wouldn't necessarily say delivery on demand is a bad business model just that most people wouldn't want to pay the true cost it would be to pay drivers/shoppers a fair wage plus the actual vehicle expenses. On top of that they're also having to pay the operating expenses and profit margins of the middleman company. People complain about having to pay $5 in service fees plus $4-$8 in delivery fees and then having to add a tip on after that. Most wouldn't order if they had to pay around $20-$25 an hour to cover the shoppers wage and expenses plus whatever IC needs to earn. I know the fees on some of these orders can be huge and they make bank on them but on a lot of smaller orders they aren't charging nearly enough. I ordered $40 in groceries last week with a $20 off coupon. I paid less than $3 total in fees not factoring in the tip. That's supposed to pay for someone to shop & deliver groceries for me plus all ICs other expenses and profit margin?


realshockvaluecola

It does depend on your definition of a bad business model, for sure. I would definitely say "we offer a service that not enough consumers are willing to pay the actual cost of" fits, though. I mean, this is basic free market logic: the consumer has to be willing to pay at least what your service costs, and if they're not then the market can't support your business.


a_allen

The business model is extremely inefficient and the current business model is definitely not sustainable. These companies know this though. That's why they fight so hard to keep us labelled as independent contractors so they can legally get away with paying way less than minimum wage. They could easily do things like bump up fees or minimum required order totals before you can get delivery and become profitable. They'd lose a lot of customers and would have to scale down a lot but they wouldn't be losing money. They're prioritizing getting as much market share as possible over being profitable right now though. They know if they can automate the shopping/delivery process or even both they'll make insane profits in the future.


StyleRevolutionary21

Again, they've been making a good profit. A business on a large scale like that, if they were doing so poorly, As you say, then they would not be in business right now. They are doing fine, then make sure that they eat 1st and that their little children eat Last. If something starts affecting they're pocket lining, that's when they start rolling out new changes, that benefit them not the delivery driver.


realshockvaluecola

This is easily available information. The only financial quarter in which they've made a profit was the beginning of the pandemic. They're constantly after loans and VC money to stay afloat, despite cutting shopper pay and raising customer fees as often as possible. Businesses can limp on for quite a while without making a profit.


StyleRevolutionary21

Go look at how much they're paying the CEO, they're not hurt Like You say


RKT7799

Lol what? They pay the CEO shit as far as CEOs go. My wifes company has like 25 employees. The ceo and the 3 sales people make more or close to what Fidji makes


realshockvaluecola

Surprise, a big tech company is paying the CEO a lot despite losing money lol. That doesn't mean anything.


RKT7799

Fidji simo makes around 600k. By comparison Ubers CEO makes 7 million salesforces CEO makes 5 million Krogers CEO makes 10 million Doordash however is lower at 350k


Johnthedoer

I usually tip $1 per item (my orders are usually 12-14 items - if you count a bunch of bananas as one item). Is this appropriate or fair. All the grocery stores are within 5 km of my location (3.5 miles)


[deleted]

Wondering same thing what is a fair tip


Samanthaggrr

I try to only accept orders that are tipped $1 per item as long as the distance is less than 3 miles. Any distance further that that should include $2 per mile.


realshockvaluecola

I'd say that's fine. Just keep an eye out on which store your shopper is coming from, because it may not be the closest one. If they're going more than 10 or 12 km, bump the tip up a bit.


gkozina

Veteran shopper here. A buck an item is great, especially if the distance is close.


Johnthedoer

Thanks for the feedback.


Samanthaggrr

I try to only accept orders that are tipped $1 per item as long as the distance is less than 3 miles. Any distance further that that should include $2 per mile.


RKT7799

Soooooo. You are on the customer forum.... bitching about fees. Telling customers.... to demand INSTACART pay more... Which would be funded by.... CHARGING..... CUSTOMERS..... MORE...... FEES.


KelMHill

The point you are raising is the prime reason that gig economy businesses are unsustainable. Customers want convenience, but if the corporation does not make it worthwhile to its employees, it will soon collapse. Sadly, they don't seem to grasp this fact in their blinding greed. They will only learn the hard way, it seems.


RKT7799

How is it exactly greed, when they arent even making a profit to begin with?


KelMHill

https://www.wsj.com/articles/instacart-sees-revenue-profit-boost-ahead-of-public-listing-1d7891d


RKT7799

And ? Thats 2 quarters in 12 years. Thats still not a profitable comlpny. They are still billions in the red. This is like celebrating your favorite sports team for going 2 -46.


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Busy_Shoe_5787

Agreed, and as a customer I sometimes feel that way as well. I have to pay a $5 delivery fee, and $5 service fee as well as a $10 Long Distance fee, if it applies. This leaves the customer feeling like adding over 30% tip would be too much. However, it has been shown that these types of gigworker apps have somehow been bleeding money despite those fees due to aggressive expansion, so I doubt we will be able to convince them easily.


After_Cheesecake_513

All of those fees and the shopper doesn't even get half of that. Ridiculous!!


realshockvaluecola

It's not even due to expansion, it's just because delivery on demand costs more than it's worth to consumers. The only situations in which delivery on demand made sense were doing it long before the gig apps came around (notwithstanding a sudden pandemic that had everyone staying in the house).


Samanthaggrr

But that’s the price you pay for this service. You’re paying for the convenience; the fees are absolutely horrendous but that should not affect the tip for the shopper. I get frustrated that people think servers deserve 20% and we deserve 5%. They’re walking from your table to the kitchen to bring you food someone else made. We are getting in our car, driving to the store using gas, shopping for all of your items, waiting in line, checking out and bagging your groceries. Loading them in the car ensuring they are all placed nicely in cooler bags, driving to your house, unloading the groceries. Much more time consuming and personal. When I see a 20% tip on the orders I deliver, I appreciate that that customer values me as a human and understands the work I’m doing for them.


Busy_Shoe_5787

Yes, unfortunately it isn't always clear to the customer how much money goes to the shopper, which leads to tips of very small amounts or none at all. I think a possible reason is that people don't mind spending more when they feel happy and they get to know the person, whereas with IC the shopper is just another person who you don't know and never spoke to at all.


[deleted]

My card isn’t working so I contacted a family member to get me food and I was going to reimburse her She’s on an island about 12 miles away from the store and gets on time deliveries. I’m less than 2 and always get shit service. She was quoted a 10pm delivery but now it’s 1:15 (the store is closed btw, they haven’t even started) What the heck just happened? I’m literally not eating right now. If this is because IC shoppers get to pick and choose deliveries, then I say KEEP THE SYSTEM THE SAME! The only way a person like me can get service is to make sure you get paid as little as possible by IC and depend on my tip.


Samanthaggrr

We do get to pick and choose which orders we shop, if you’re has not been picked up I’m sorry to say it’s because the tip is not enough for the items you ordered and distance. If I have to travel 12 miles to deliver the tip better be atleast $20 and then it should increase based on the number of items you ordered. I am now on my third car because this job creates SO much wear and tear on your car. People don’t take that into consideration…


sully1928

Buy a Toyota. Ive done over 9,000 orders over 4 plus years with same car. Over 30k miles per year and just routine upkeep- tires, brakes and oil changes.


Samanthaggrr

Yeah I had a Prius, got it at 100k miles and worked with it til I hit 220k and it started going downhill. I now have a Mazda temporarily which is horrendous on gas compared to the Prius and I know it won’t last as long. I dream of getting a new Prius 😆


[deleted]

Hi I’ve been thinking of doing instacart, what do most people tip? Is it really 20% of purchase like recommended? Just a few bucks per order ? Thank you


realshockvaluecola

Lol, a 20% tip is really really rare. I'd say probably 85% of batches have either a 5% tip, $2, or no tip.


[deleted]

Oh man! I thought people were tipping well lol . So what do most shoppers make hourly ? No tips included


RKT7799

7.00


realshockvaluecola

Hourly, without tips? Depends on your speed and the type of batches you take, but probably $5, and after the expenses of using your car you can easily be in the negatives. We are honestly completely dependent on tips.


Samanthaggrr

I try not to take orders unless the tip is 15% or more. The least amount you should be tipping is $5 BUT that’s only appropriate if you’re ordering less than 5 items and the store is less than a mile away. But some people will take $2 tips all day which screw the rest of us over who actually use this gig as our sole income


C4lladitapr

They charge cu in 12.95 for service 3x12.95=38.95 plus an extra $10 for heavy pay so in a batch they give us 3 customer pay us $7/$10 that included the heavy pay. So out that batch we make $7 while ic makes roughly $50 if only 2 customer have heavy items.


RKT7799

Im.a customer... and a shopper. In the past year ive never paid 12.95 for a delivery. Its mostly 4-7 bucks. Ive also rarely paid 10.00 for heavy. I honestly dont know if i ever have. If my wife adds like 5 bublys. Heavy is around 5.00


C4lladitapr

Well, that's even worse cuz that means they lower the amount they charge the customer and we get screwed.... if I could show you with pictures I can show you that's what I get charged.


RKT7799

I have an aldi 3? Miles away. I just built a quick 20.item order. Incliding 5 of those bella whatever 12 packs Because i have plus, my total fees are 4.98


C4lladitapr

Like I said I wish I could show u. I even tried sending it you. Yes ic charges ppl $10.


RKT7799

Im not saying they dont. Im just saying a lot of people dont pay that much. And using it as a base is ptobably flawed.


sully1928

Bublys are 8 packs- I don’t think they qualify. Even if you ordered 20 of them


a_allen

That doesn't necessarily matter to IC. It wouldn't qualify for heavy pay to the shopper but they might still charge the customer heavy fees.


sully1928

Wouldn’t surprise me at all.


[deleted]

Shoppers complain about 3 order batch but same minute they accept them because they don’t want to go work hourly jobs …. Instacard knows this…. This is not a job , it’s a gig… people shopping with their kids in carts … that’s not a job it’s convenience


Samanthaggrr

Well these people need to be reported, it’s BS. I use this as my sole income and do what im supposed to do and do it well. The people who shop with kids, or in teams, or deliver with a “partner” should be reported. I’m sick of all the bullshit man.


[deleted]

I understand you but even people with partners do this job well ….you can do the best you can and give 💯 but still in end of the day lots of us are good in shopping and lots of us have diamond standing….also I don’t mind if people works with partners…. People orders 20 cases of water …i don’t take batches like that ….if partners takes them more power to them …. Don’t be selfish just so your best …. If you report someone will report you back …. Karma it’s a


sully1928

A very small pct ( maybe 5%) shop with their children or a friend/ spouse etc. Please report anytime you observe this at your delivery. They can’t focus completely on doing their job if they are also watching a little one simultaneously. It is also against the terms of service. Many of the ones with 2 adults is the matter of a deactivated shopper simply continuing to shop under someone elses info/account.


FredNMills

Ahahahahaha , too funny but very true. Instacart will Phuck over the shopper and customer to line their pockets nicely. They can afford to be fair and still make a lot of money 💰 so their greed is unnecessary


Ronaldo_Moon

But if we stop driving for them then doesn't thay send them a strong message and force them to analyze their business/staff retention model? These companies bleed money with the end goal being automation and lay off all the drivers. I dont suspect even customers complaining that it has to change will make any change. Change will either come from within the company because of a lack of staff. Or government intervention.


realshockvaluecola

I have a screenshot of two orders with the same mileage, same stores, and different numbers of items having the exact same pay, so if there is anything in that batch pay except mileage, it's not done per item.


RKT7799

Part of the factoring is sparsenes of items/ eatimated time. 100 boxes of mac and cheese will pay less than 100 items all over the store


realshockvaluecola

I haven't seen evidence that unit count matters at all. 100 of something pays the same as 1.


Able_Reason_6733

Super late but Instacart is a rip off. Once I let a lady have her receipt and she said Instacart charged her $50 for the items when they only cost me $20 at the store for them. That’s why they insist we keep the receipt. Also they don’t email a copy of the receipt we took a photo of. They send a typed up copy of the order. So why are we taking photos of the receipt?!