What DoorDash’s Proposed Instacart Deal Could Mean for Delivery Workers
DoorDash’s proposed $17 billion acquisition of Instacart could change the range of orders available to delivery workers, but its effect on their earnings remains uncertain. Announced Thursday, the deal would strengthen DoorDash’s grocery-delivery business alongside its restaurant-delivery operations. It still requires federal approval.
If approved, Instacart would keep its brand and app, DoorDash executives said. The companies plan to list merchants across both platforms rather than replace Instacart’s consumer app. DoorDash Chief Financial Officer Ravi Inukonda said listing restaurants on Instacart could increase sales. The companies say workers could gain more choices about when and how they earn, such as taking grocery orders during quieter periods and restaurant orders at peak times.
The proposed acquisition would bring together large networks of people who shop for groceries and deliver food. DoorDash Chief Executive Tony Xu said smaller grocery chains are looking for ways to compete as Amazon and Walmart expand delivery services. He suggested the combined business could offer faster delivery, lower prices and more opportunities for shoppers. Those are potential outcomes, not guaranteed results.
More available orders would not necessarily mean higher hourly pay. Data from gig-work analytics company Gridwise, published in March, put average earnings at about $13 an hour for Instacart workers and $11 an hour for DoorDash workers. Both figures were below those reported for Amazon Flex and Uber Eats. The figures describe earnings before the proposed deal and do not predict what workers would make afterward.
Questions also remain about how cross-platform orders would be offered to workers in practice. DoorDash has described plans to preserve Instacart’s separate app and broaden the merchants listed on each service, but has not detailed every change workers might encounter. For now, the clearest distinction is between the companies’ plans and their possible effects: the transaction must first receive approval, and any changes to workers’ daily routines or pay would depend on how the combined business operates.