Exploring the Gig Economy: Instacart vs. DoorDash
In recent years, our world has witnessed a significant shift toward the gig economy, where individuals can earn money through freelance work or short-term jobs. This model has become especially popular among those looking for flexibility in their work schedules, whether they are students, parents, or individuals seeking a side hustle. With this trend, consumers are also increasingly outsourcing everyday tasks such as grocery shopping, housekeeping, and transportation.
Among the various sectors of the gig economy, grocery shopping and food delivery services have surged in popularity. Two of the most recognized players in this space are Instacart and DoorDash. Both companies frequently appear on lists of top gig economy jobs, but how do they stack up against each other? This friendly comparison will help you decide which platform might be the best fit for your needs as we look ahead to 2025.
Understanding Instacart
Founded in 2012, Instacart is an on-demand grocery delivery service that has transformed the way people shop for groceries. Initially struggling, the company found its footing during the Covid-19 pandemic, leading to a boom in demand. Today, Instacart boasts around 9.6 million active users and approximately 500,000 shoppers, making it a giant in the grocery delivery industry with an estimated valuation of $39 billion.
One of the appealing aspects of working with Instacart is the flexibility it offers. You can choose to be either a Full-Service Shopper or an In-Store Shopper, which caters to different preferences and lifestyles.
Full-Service Shopper
As a Full-Service Shopper, you have the responsibility of receiving orders, shopping for the groceries, and delivering them directly to the customer’s doorstep. This role can be quite rewarding, both financially and personally, as it allows you to engage with customers and help them get essential items. Full-Service Shoppers can earn more per order, especially when tips are included, but it’s important to note that they are independent contractors, which means they have to manage their own taxes and expenses, including fuel and vehicle maintenance.
In-Store Shopper
On the other hand, In-Store Shoppers focus solely on gathering grocery orders for customers who will pick them up. This role is more structured, as it requires working set shifts and is capped at 29 hours per week. It’s a great option for those who prefer a more stable work schedule and do not need a vehicle for their job.
DoorDash: The Food Delivery Contender
Established in 2013, DoorDash has rapidly become a leading food delivery service, with its founders initially handling every aspect of the operation, including app development and order delivery. With around 18 million users, DoorDash controls a substantial portion of the food delivery market, recently holding 45% of it in the U.S. Its revenue skyrocketed during the pandemic, growing by 241% in 2020, which reflects its increasing popularity and reach.
DoorDash primarily started as a meal delivery service, allowing customers to place orders from local restaurants through its app. However, to keep up with changing consumer demands, DoorDash has since diversified its offerings to include grocery delivery through its Shop & Deliver service. This expansion allows Dashers (as DoorDash drivers are called) to deliver not just food but also groceries and convenience items.
Comparing Instacart and DoorDash
When weighing your options between Instacart and DoorDash, it’s essential to consider various factors such as earnings potential, scheduling flexibility, and the nature of the work involved.
Earnings Potential
When it comes to pay, both platforms offer competitive earnings. Instacart’s Full-Service Shoppers have the potential to make around $30 an hour, depending on location and demand. They also keep 100% of their tips, which can significantly boost their overall earnings. On the other hand, DoorDash’s earnings depend on the Dasher Pay Model, which includes base pay, tips, and potential bonuses for completing orders during peak times. While DoorDash may offer a lower base pay compared to Instacart, many Dashers find they can earn more through tips and bonuses.
Scheduling Flexibility
One of the most attractive features of both Instacart and DoorDash is the flexibility in scheduling. Instacart allows shoppers to choose their hours, especially for Full-Service Shoppers. However, In-Store Shoppers must adhere to a set schedule. DoorDash, on the other hand, provides even more flexibility by allowing Dashers to work on-demand in busy zones or schedule shifts in 30-minute increments. This flexibility makes DoorDash a favorable option for those seeking to maximize their working hours around other commitments.
Safety Measures
Both companies have implemented various safety measures to protect their workers. Instacart offers sick pay and has added contactless delivery options to ensure a safe shopping experience. Similarly, DoorDash provides financial assistance for Dashers who need to quarantine and promotes no-contact deliveries as the standard practice. These safety features are essential in today’s environment and show a commitment to the well-being of gig workers.
Final Thoughts: Instacart vs. DoorDash
Ultimately, the choice between Instacart and DoorDash depends on your personal preferences and circumstances. If you enjoy grocery shopping and prefer a structured work environment, Instacart may be the right fit for you. Conversely, if you appreciate greater flexibility and variety in your work, DoorDash could be the better option. Many gig workers choose to sign up for both platforms to explore which one best meets their needs.
In conclusion, whether you choose Instacart or DoorDash, both platforms offer unique opportunities to earn money on your terms. The gig economy is here to stay, and with the right approach, you can make it work for you!