Customers can shop for goods online and have them delivered to their door using the grocery delivery and pick-up service Instacart. Instacart has been a significant player in the e-commerce sector since its launch in 2012. The business has been growing quickly, and it has alliances with significant American retailers like Costco, Walmart, and Kroger. One of the most prosperous startups in the United States, Instacart was valued at $39 billion in 2021.
Co-founders and investors share ownership of Instacart, which is a privately held business. Former Amazon employee Apoorva Mehta started the business in San Francisco. Mehta currently leads Instacart as CEO and holds a large ownership share in the business. Brandon Leonardo and Max Mullen, two additional Instacart co-founders, also have stock in the business.
Instacart is owned by a variety of investors, including venture capital firms including Andreessen Horowitz, Sequoia Capital, and Khosla Ventures, in addition to the co-founders. Over the years, these investors have given Instacart financial support, enabling it to develop and broaden its business.
Competition for Instacart’s grocery delivery business comes from Shipt. There are a few reasons why Shipt is more expensive than Instacart in comparison. First off, Shipt costs a $99 annual membership fee, which is more expensive than Instacart’s $99 annual fee. Customers who pay the membership fee can get free delivery on goods worth $35 or more. Second, compared to Instacart, Shipt typically charges greater delivery rates. Shipt customers may anticipate paying between $7 and $10 for delivery, compared to Instacart customers who typically pay between $3 and $8.
Shipt can fire employees, thus yes, it is an employer. The shoppers for Shipt are not officially corporate workers because they are independent contractors. However, if customers don’t live up to expectations or disregard company rules, Shipt has the right to cancel their contracts. For instance, a shopper may be fired if they routinely deliver orders late or don’t connect with clients. Does Shipt face legal action?
Legal problems have previously existed for Shipt. A number of Shipt customers sued the business in 2020, claiming that they had been wrongly classed as independent contractors and had thus been denied access to employee perks like minimum wage and overtime pay. It is yet unclear how the lawsuit will turn out because it is still active.
Yes, couples can work together as shoppers on Shipt. However, each person is required to have a Shipt account and pass a background check before being hired. Couples can collaborate to shop and deliver orders, but they must divide the profits equally. Since doing so would be against the company’s standards, Shipt prohibits users from using another user’s account to fulfill orders.
Earnings for shipt shoppers range from $15 to $25 per hour on average. Depending on the quantity of items finished and the shopper’s effectiveness, this would equal to roughly $600 to $1000 every week. However, this sum may change depending on the location, demand, and tips.