In the Los Deliveristas Unidos survey, low pay was by far the biggest concern cited by workers: 64 percent reported that they worked six or seven days a week, and the average hourly net pay, with tips included, was $12.40. New York City’s minimum wage is $15 per hour.
Workers are also responsible for their own expenses, including the e-bikes most NYC delivery workers use, batteries and maintenance for those bikes, helmets, monthly data plans, and insulated bags. The new NYC laws will require companies to cover the bags, but the overall expenses reported in the survey averaged out to $339 per month.
Outside of densely populated cities, most food delivery workers travel by car, so recent surges in gas prices have also been incredibly hard on workers. “About 50 percent of the offers that I see are ones in which there is no feasible way to profit,” said Vanessa Bain, an Instacart shopper based in the San Francisco Bay Area. “You are either going to break even, or more likely than not, you’re going to lose money by taking it.”
Bain started the Gig Workers Collective in 2016 to help Instacart shoppers organize for fair compensation. That year, the company tried to remove tipping, but reinstated it after the organization led a boycott. And they’ve successfully fought other changes to the pay algorithm that cut wages since then.
“There have been many, many instances in which Instacart either reduced pay, removed transparency, or otherwise manipulated or tweaked our earning capacity,” Bain said. “Shoppers have responded with . . . action, and we get a concession almost every single time.” Still, she said, Instacart’s pay per delivery is now completely driven by a proprietary algorithm, which means the company can “shave off a few cents” or make changes to how and how much shoppers get paid at any time, without disclosing those changes.
In the Bay Area, she said, the number of people working in the app-based food economy at any given time is so high that when she logs onto Instacart, she has to wait for an offer to pop up and then make a split-second decision about whether or not to accept it—even if it might not pay off—before another shopper snaps it up.
Unlike in NYC, where Los Deliveristas Unidos found most food delivery workers are doing the work for 40 hours or more each week, Bain said she has been seeing fewer people working for Instacart in the Bay Area full-time.
“As the profitability and sustainability of this work has slipped further and further away from us, there are not as many people who are able to do this work full time and pay their bills and stay afloat,” she said. As a result, organizing workers within the Gig Workers Collective has gotten harder, as people cycle in and out of the job quickly.
Still, Bain has a core group of about 1,000 members, she said, and the group’s main focus is on fixing what she calls “misclassification.” She believes that under California law, app-based food and grocery workers should be classified as employees and that the state has not been enforcing the law. Under AB5, app-based delivery workers were supposed to be classified as employees, but a law approved by voters in 2020, which was heavily backed by companies such as Uber, Lyft, and DoorDash, exempted those companies from the law. Both laws are tied up in court battles.