Retail

Gig worker pay on delivery apps like Uber Eats and DoorDash fell up to 15% last year

DoorDash delivery person with bike
Gig workers made less money on apps like Instacart and Uber Eats last year, a new study shows. REuters
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Delivering for Uber Eats and DoorDash as a gig worker got less lucrative last year, according to a new study.

Uber Eats drivers saw the biggest decline in gross earnings at 15.4%, according to a study from Gridwise Analytics, which gathers data on earnings for about half a million gig workers.

Uber Eats workers made $472.72 a month on average last year.

"In the past year, there has been a marked decrease in the monthly average gross earnings of drivers," a summary of Gridwise's findings on wages reads.

Instacart shoppers earned 8.3% less, with average monthly earnings of $606.50, while DoorDash workers saw their earnings slip just 0.1% to $703.17, though they worked 3.2% more hours on average.

Grubhub workers saw their earnings increase 6% during the year, though they had to work 13.6% more hours.

Rideshare drivers for Uber took the biggest pay hit at 17.1%, though they still earned more on average each month than gig workers on other apps ($1,409.71).

Only Lyft drivers earned more than 2022 (2.5%) while working fewer hours (12.9%).

In a statement to Business Insider, a DoorDash spokesperson called the monthly earnings statistic "a pretty flawed way to look at how Dashers earn" since "their time on the app can vary month to month and even week to week."

And Uber Eats spokesperson said the report "relies on a fraction of drivers and couriers across the country and doesn't accurately reflect the facts."

Meanwhile, an Instacart spokesperson told BI: "This report is not inclusive of data from the full shopper population, and cannot be fully representative of earnings across the Instacart platform."

A Grubhub spokesperson responded to the report, saying: "We support higher pay for our delivery partners and are pleased that they're earning more."

The other companies mentioned in the report didn't immediately respond to requests for comment from Business Insider.

Gig workers for a variety of delivery services have told BI that making money has gotten harder, especially compared to the early-pandemic demand for delivery in 2020.

Competition among gig workers is part of the issue, they say, with more people signing up for the apps.

In other cases, companies have cut pay. Last summer, Instacart slashed its minimum base pay for shoppers to $4 from its previous $7, for example.

While many gig workers deliver food or drive people to the airport as a side hustle, those who work for the apps as their main source of income have been particularly hard-hit by the cuts. Some have even started looking for traditional 9-to-5 jobs.

Do you work for Instacart, DoorDash, or another gig work app and have a story idea to share? Reach out to this reporter at abitter@jkmperu.com

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Alex Bitter
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansionStarbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at abitter@jkmperu.com or via encrypted messaging app Signal at +1 (808) 854-4501.