Gig workers could see changes to how they make deliveries if DoorDash’s $17 billion deal for Instacart goes through.
The companies announced the acquisition on Thursday after several years of considering a deal. It would give DoorDash, long one of the dominant names in restaurant delivery, a much stronger position in grocery delivery.
The acquisition would also bring together millions of gig workers who make deliveries for both companies.
Here’s what we know so far about how the deal would affect delivery workers:
DoorDash plans to keep the Instacart app
If the deal wins federal approval, DoorDash doesn’t plan to fold Instacart’s brand into its own.
That means that the apps will continue to function on a stand-alone basis, DoorDash executives said on a call on Thursday to discuss the deal.
“I think Instacart has built a great brand, and it is a very unique brand where their audience is very loyal to that brand,” DoorDash CEO Tony Xu said on the call.
Gig workers will be able to take both restaurant and grocery orders
DoorDash plans to cross-list merchants on the two different apps, CFO Ravi Inukonda said.
Restaurants represent one obvious opportunity, he said. “We are going to be able to list our restaurant platform on Instacart, which is going to drive top-line growth,” Inukonda said.
Access to more kinds of orders means that gig workers will have “more choice over when and how they earn, whether that’s grocery orders on a quiet day, restaurant orders at peak times, or both,” the company said in its deal announcement.
DoorDash says the deal could mean ‘greater earning opportunities’
Many of Instacart’s grocery partners are looking to compete with bigger companies, Xu said on the call. Amazon and Walmart are both expanding their delivery networks, especially for same-day delivery and fresh food, and many smaller chains will turn to the combined company to offer delivery.
That could mean “faster delivery times, more affordable prices for everyone, greater earning opportunities for shoppers,” Xu said, referring to gig workers who shop and deliver orders.
Whether those opportunities result in more pay for workers remains to be seen.
Instacart workers make about $13 an hour, while those working for DoorDash average about $11 an hour, according to gig worker pay data from analytics company Gridwise published in March. Both rates were lower than rival delivery services, such as Amazon Flex and Uber Eats.
Do you have a story idea about DoorDash and/or Instacart? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.
