DoorDash vs. Instacart: Which Earns More Cash?
Increasingly, the economy is moving more and more towards a gig economy. Customers want to be able to outsource their basic needs like ride-hailing, grocery shopping and food delivery. In turn, an estimated 57 million or so gig economy workers want or need flexible work schedules and the ability to make a living or earn additional income.
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Two of the most common gig economy services, and thus employers, are DoorDash and Instacart. Here’s a look at the business model for each and a comparison of their benefits for workers.
Quick Take: Doordash Drivers vs. Instacart Shopper
Although both DoorDash and Instacart are specialty delivery services, their operating models are different. If you are looking to earn money with one of these side gigs, here are a few key takeaways to keep in mind:
DoorDash specializes in the delivery of restaurant meals, while Instacart focuses on grocery delivery and other household staples.
The kinds of roles that are available vary by service, time of day and type of items.
At DoorDash, workers are called Dashers. The goal is to pick up restaurant orders and deliver them to the customer promptly.
At Instacart, you can be a full-service shopper — meaning that you handle the shopping, checkout and delivery by yourself. In this type of role, you’re operating as an independent contractor. You can take orders as you see fit, around the clock, with no limit on the business you take on.
In some markets — but not all, you can also be an in-store shopper for Instacart. You don’t need a car for this position, but you’ll have less freedom because you’ll be operating as a part-time Instacart employee. You’ll work scheduled shifts, as much as 29 hours per week.
DoorDash vs. Instacart: How Much Money Can You Make?
Base pay for a Dasher is between $2 – $10 and up, depending on the specifics of the order. During certain promotions, such as peak pay or challenges issued by DoorDash, you can earn more. You’re also able to earn tips for each delivery, which are entirely yours to keep. Hourly pay ranges from $7.25 to $41 on average.
Although Instacart doesn’t offer an estimate of potential earnings for full-time shoppers, Indeed indicates that, on average, a shopper can expect to earn a base pay of $7.25 to $29.15 per hour. There are also opportunities for shoppers to earn more through Instacart promotions, during times of high customer demand. Shoppers also get to keep 100% of customer tips as well.
One potential downside is that with both services, customers can adjust tips after the delivery happens. For some shoppers, that can be a difficult reality to grapple with since it’s impossible to know upfront whether a customer may be tip-baiting, or offering a large tip to entice someone to pick up their job only to withdraw that incentive later.
To address this, Instacart allows modifications to tips up to 14 days after delivery for increases, but reductions must be made within 2 hours. Additionally, for any adjustments, feedback on the experience is required. Similarly, DoorDash offers tip adjustments for up to 30 days after an order only by contacting a support representative.
How the Pay for DoorDash and Instacart Works
Both DoorDash and Instacart pay their workers weekly. However, Instacart offers its shoppers the option of Instant Cashout, which allows for same-day payments for a small fee. Those working for DoorDash also have the option to cash their balance out daily — for free via direct deposit or for a fee of $1.99 via debit card.
DoorDash vs. Instacart: Requirements
What do you need to work for DoorDash or Instacart? Here’s a look at their requirements:
DoorDash Delivery Driver | Instacart Full-Service Shopper | Instacart In-Store Shopper |
|---|---|---|
Must be at least 18 years old — 19 years old in Delaware, Montana and West Virginia | Must be 18 years or older | Must be 18 years or older |
Driver’s License number | Work-eligible in U.S. or Canada | Work-eligible in U.S. or Canada |
Social Security number (U.S. only) | Smartphone with Android 5.0 or later or iOS 14 or later | Smartphone with Android 5.0 or later or iOS 14 or later |
Consent for background check | A functional, registered vehicle | Ability to lift 30+ pounds |
Any car, scooter or bicycle | Auto insurance, per local laws | Commitment to following Instacart’s safety policies |
Ability to lift 30+ pounds | ||
Commitment to following Instacart’s safety policies |
Where Is DoorDash Available?
DoorDash is available in more than 7,000 cities throughout the U.S., Canada and Australia. If you’re working for DoorDash in your hometown but you happen to be traveling and you’d like to earn extra money during your trip, you can accept and handle orders in your current location.
Where Is Instacart Available?
The Instacart shopper app maintains operations in all 50 U.S. states to help deliver groceries and more. Before signing up, be sure to check your location to find out whether the available opportunity is full-service shopper, in-store shopper or both.
How To Time Your Shift Correctly
When a customer awaiting delivery submits their order, a time window is provided — for example, it might be 6 p.m. – 8 p.m. local time. General guidance is that it tends to bode well to show up on the early side — so as close to 6 p.m. as possible in this case. That means that your activity for that job will likely start in the 4 p.m. or 5 p.m. hour, depending on how much time it will take to service the order.
Many shoppers find that early on, they must handle one order at a time — but as their shopping and/or delivery skills progress, they’re able to build their earnings up by handling multiple orders at once.
DoorDash vs. Instacart: What Workers Have To Say
Overall, according to employee reviews on Indeed, DoorDash earns 3.3 out of 5 stars for personnel satisfaction. Dashers like that they have invigorating work tasks, a sense of purpose and flexibility about when and where they work. Downsides include a perceived lack of support from management and a lack of appreciation at the individual level.
At Instacart, the story is much the same. Instacart employees give their experience 3.1 out of 5 stars as well. They tend to like the autonomy they have in meeting personal goals, flexibility in terms of when and where they work and a sense of purpose. Like Dashers, they also feel there’s room for improvement in terms of creating a supportive environment and they’d like a stronger sense of belonging.
Final Take To GO: Which One Is Better?
The answer to that question depends on what your goals are as a gig economy worker. If you’re looking for speed in terms of getting started and getting paid, then DoorDash is your best option. It has fewer requirements out of the gate and provides the option of daily payments. On the other hand, if you want to work on bigger, more expensive orders and potentially larger tips, Instacart may be worth the time it takes to submit an in-app interview and get established on the platform.
FAQ
Here are the answers to some of the most frequently asked questions about Instacart and DoorDash.
Do you make good money doing DoorDash?
Yes, being a Dasher can provide great income. You're also able to earn tips for each delivery, which are entirely yours to keep. Hourly pay ranges from $7.25 to $41 on average.
Do you make good money doing Instacart?
Yes, though what you make running to and fro from grocery stores will vary based on where you live and when you work. For example, on average, a shopper can expect to earn $7.25 to $29.15 per hour before tips. There are also opportunities for shoppers to earn more through Instacart promotions, during times of high customer demand.
Is it worth it to deliver for Instacart?
Delivering for Instacart can be worth it if you enjoy grocery shopping and have a flexible schedule. Earnings vary based on factors like location, time of day and customer demand, with opportunities to increase earnings through promotions and tips.
Is it better to do Instacart or DoorDash?
Choosing between Instacart and DoorDash depends on your preferences and goals. If you prefer restaurant delivery and quicker, smaller tasks, DoorDash might suit you better. If you enjoy grocery shopping and larger orders, Instacart could be more appealing. Both offer flexible work hours and the potential for tips.
What are the disadvantages of Instacart?
Disadvantages of Instacart include the potential for tip-baiting, where customers reduce tips after delivery, and fluctuations in earnings based on demand and competition. The need to manage shopping, checkout and delivery in full-service roles can also be challenging, especially during busy periods.
Cynthia Measom and Caitlyn Moorhead contributed to the reporting for this article.
Information is accurate as of March 25, 2024.
This article originally appeared on GOBankingRates.com: DoorDash vs. Instacart: Which Earns More Cash?
