Instacart vs. DoorDash: Which One is Better for Drivers?

Numbers don’t lie! The food delivery market is expected to grow from $28 billion in 2021 to $42 billion by 2025. The growing popularity of online food ordering and delivery has led to food delivery companies like Instacart and DoorDash.

Both companies have extensive market coverage, competitive pay, and can help you boost your monthly income with the endless demand for home delivery drivers. But between Instacart and DoorDash, which company is better for drivers? 

In this guide, I’ll help you determine which company is better when it comes to pay, safety, and flexibility.

Instacart vs. DoorDash: Which One is Better for Drivers?

While Instacart and DoorDash are among the two most popular food delivery companies, there are several differences between them, most notably what they deliver. 

Here is an overview of these two giant food delivery services.

Instacart Overview

Instacart is an on-demand grocery demand service established in 2012 and is projected to go public in 2022. It is available in over 5,500 cities across the United States, and Canada has amassed a broad customer base of over 500,000. Instacart works with over 350 grocery retailers, including Kroger, Costco, Petco, Safeway, Target, H-E-B, and Aldi.

Customers can order online or through their app and pick up their packaged orders from the store or deliver them directly to their homes.

Based on these purchase options, if you want to be an Instacart driver, you can either work as an in-store shopper or a full-service shopper.

Full-Service Shopper

As a full-service shopper, you shop for and deliver orders to the customers. Full-service shoppers are considered independent contractors, and you can pick the hours you are comfortable working. However, you need a car to make the deliveries, and you must be well-versed with your local area and its grocery stores.

In-store Shopper

In-store shoppers shop for the orders and package them for customer pick-up from the store. Unlike a full-service shopper, an in-store shopper is considered a part-time Instacart employee, and their working hours are limited to 29 hours per week. In addition, you don't need a car to become an in-store shopper.

You can't work as both a full-service and an in-store shopper - you have to pick one. However, if you have great reviews and excellent standing with Instacart, you can switch after six months.

DoorDash Overview

Founded in 2013 as an on-demand food delivery service, DoorDash is now available in over 4,000 cities in the United States, Canada, and Australia. The company has a 50% market share in the US and has partnered with more than 340,000 restaurants and merchants, including Wingstop, Five Guys, Chick-Fil-A, Wendy's, and Dig Inn. 

This year, DoorDash partnered with Albertsons and will start delivering groceries from leading local stores, including Wawa, Safeway, 7-Eleven, Smart & Final, CircleK, and Casey's General Store. DoorDash refers to their delivery couriers as Dashers and can use a scooter, bicycle, motorcycle, or car to do deliveries. 

Dashers can log in to the DoorDash app at any time to check on available orders, or they can schedule blocks of time to work up to a week in advance. You can earn money by shopping for products in the stores, paying with your red card, and delivering them to customers. Due to its success and huge customer base, DoorDash encourages drivers from other services like Instacart, UberEATS, Postmates, and more to deliver for them.

Instacart vs. DoorDash: Requirements

Before you consider working for either of the two delivery companies, it's crucial to understand the job requirements.

Instacart

To become an Instacart driver, you need:

• Be 18 or older
• A newer smartphone (preferably Android 5.0 and above or iPhone 6 and above)
• A valid driver's license and car insurance
• Good health and ability to lift 50 pounds

To sign up as an Instacart driver, provide your name, phone number, email, photo of your driver's license, and ZIP code. You need to also download the Instacart shopper app on android or iOS and complete a questionnaire. 

Instacart then sends you a prepaid debit card that you will use to pay for the groceries. Finally, you sign an independent contractor agreement, submit a W-9 form, and warrant a background check.

DoorDash

To become a Dasher, you need to fulfill the following:

• Be 18 or older
• A valid driver's license and car insurance
• A functional and reliable scooter, bike, or car
• A smartphone that can run the DoorDash app (Android 5.0 and above or iPhone and above)

Similar to Instacart, to sign up for DoorDash, provide your name, phone number, email, and vehicle type. Then, upload a photo of your driver's license, registration, and insurance, then consent to a background check. A criminal record within the last seven years disqualifies you outright.

After passing the background check, DoorDash will send you an Activation Kit with a DoorDash red card to pay for the orders and a food delivery bag.

Instacart vs. DoorDash: How Much Money Can You Make?

Instacart and DoorDash have different payment amounts affected by various factors, including location and working hours.

Instacart

Instacart's payouts are based on several factors like the type of shopper you are, how many orders you complete, and your location. According to Glassdoor, full-service shoppers earn between $9 and $48 per hour with an average of $29 per hour.

Unlike an in-store shopper, a full-service shopper will see an estimate of the expected payout before they deliver it. The pay per order is based on how many items are in the order, the number of times, driving distance, and the effort it takes to shop and deliver the order. You get to keep 100% of your tips. As a full-service driver, you are responsible for withholding taxes and the wear and tear of your car.

In-store shoppers are paid a flat hourly wage, ranging from $9-$16/hour. This is based on where you're working, and you'll see the rate in the offer letter you get from Instacart when you sign up to shop.

After clocking 40 hours of service in the past six months, Instacart gives you a unique code that allows you to earn referral bonuses after your friends sign up. The bonus and requirements vary by zone and role.

DoorDash

Dashers earn $23 per hour, and your earnings are based on the Dasher Pay Model. Here's what it looks like:

Actual earnings may differ and depend on factors like number of deliveries completed, time of day, location, and expenses. Hourly pay is calculated using average Dasher payouts while on a delivery (from the time you accept an order until the time you drop it off) over a 90 day period and includes compensation from peak pay, tips, and other incentives.

The Base Pay ranges from $2-$10. This amount increases if you need to drive a longer distance to complete an order, if the order will take more time overall, and if it's less popular with other Dashers.

Promotions allow you to make more, and there are three options:

• Peak Pay: These are the busiest delivery hours in your area, and you'll see a Peak Pay alert pop up in the app. Peak Pay is usually around $1-$4 more per delivery.
• Challenges: These are incentives to complete a given number of orders in a set amount of time. Challenges show up in the app, and you can also track your progress. In addition, you can combine Peak Pay and Challenges to earn even more.
• Drive: These are large orders that you're paid extra for.

Customers can leave a Tip for their Dasher in the app either when they check out or when the order is completed. You get 100% of that amount. Just like Instacart, Dashers are responsible for taxes and wear and tear on their vehicles.

Instacart vs. DoorDash: When Do You Get Paid

After making your deliveries, how and when do you get paid by Instacart or DoorDash?

Instacart

Instacart pays its shoppers each week via direct deposit. If you're an in-store shopper, you can request a check be mailed to your house. You can keep track of all of your earnings in the app.

DoorDash

Dashers get paid every week, and payments are transferred directly into your bank account using direct deposit. Most Dashers see payments show up in their accounts by Wednesday.

DoorDash offers something called Fast Pay if you want to cash out your earnings early. However, you are charged $1.99 each time you use Fast Pay.

Instacart vs. DoorDash: Job Review

What is it like to work for either of the delivery service companies?

Instacart

Instacart pays you to shop for and deliver groceries to customers. You can schedule all your hours through the Instacart app, and you can make deliveries between 9 am, and 12 am.

Thirty minutes before your shift begins, you receive notifications of orders coming through. Depending on the distance and pay, you decide on which orders you can take on.

After choosing an order, you head out to the store and shop with your Instacart debit card. The card is loaded with cash so that you won't use any of your money.

Through the app, you can keep in contact with the customers while delivering their groceries. Ensure they are happy with substitutions and keep them updated on the expected delivery time.

DoorDash

After successful registration to work as a Dasher, you receive an Activation Kit with a red card and an insulated bag to carry the items.

To ensure a nice stream of orders, DoorDash limits the number of delivery couriers working at once. You can book to work on the same day or a week in advance. Alternatively, you can use Dash Now that allows you to accept or reject orders after they pop up. These orders show up in red or pink color on the DoorDash app; however, only particular areas offer this.

Instacart vs. DoorDash: Driver Safety

Instacart

Instacart protects its shoppers when they fall sick by allowing them to accrue sick pay. For every 30 hours you work, you get one hour of sick pay. So the maximum you can amass is 40 hours annually.

In the wake of Covid-19 and the high need for social distancing, Instacart offers contactless delivery that allows customers to choose the option of having their order left at the door. After delivery, take a photo of the delivery in place as proof.

DoorDash

As Covid-19 continues to bring uncertainties, DoorDash provides up to two weeks of financial assistance to Dashers who contract the COVID-19 or are placed in quarantine. However, you must have completed at least 30 deliveries and actively worked with DoorDash in the last month to qualify for this. 

All deliveries are defaulting to no-contact drop-offs, and moving forward, Dashers can request no-contact delivery at any time. This can help you feel safe while out delivering groceries.

Instacart vs. DoorDash: The Final Verdict

While DoorDash takes a slight lead in several areas, there is no significant difference between Instacart vs. DoorDash. Both have also placed safety measures to protect their customers and drivers safe and healthy against the raving Covid-19 pandemic. You can even work for both companies to maximize your earning potential.