Is Driving for Instacart Worth It?

If you're looking to make extra money, becoming an Instacart shopper and driver is an option. Instacart drivers shop for groceries and deliver them using their personal vehicles. As of 2022, about 27% of online shoppers in the U.S. reported using the delivery app. But is driving for Instacart worth the time and the vehicle wear and tear? 

How much do Instacart drivers make?

With many app-based side gigs, figuring out how much you can actually expect to earn gets complicated. Instacart is no different. Your earnings will depend on the orders you accept, your location, Instacart promotions to incentivize drivers, and tips.

One clarification: This article focuses on whether it's worth it to become a full-service shopper, an independent contractor role that includes receiving a 1099. As a full-service shopper, you handle both the shopping and the delivery. You get to choose when you work. Instacart also has in-store shopper roles that don't require making deliveries. However, in-store shoppers are actually part-time employees who work a scheduled shift.

Glassdoor estimates that Instacart drivers make an average of $19 an hour, including base pay and tips. Its likely range for driver pay (which represents the 25th percentile and 75th percentile) is $16 to $22. 

Things work differently if you're a California driver, though: Drivers are guaranteed to make 120% of the local minimum wage from the time they accept the order until delivery, plus $0.34 per mile driven between the store and delivery address.

One thing to note: In July 2023, Instacart slashed its base pay -- the minimum amount drivers receive for an order -- from $7 to $4. Because this cut was relatively recent, Glassdoor's averages probably don't yet reflect it.

Other factors to consider

In deciding whether to accept any job, the question boils down to how much your time is worth. But when you're driving for Instacart or working any 1099 role, there are a few additional considerations.

As a 1099 employee, you won't receive health insurance or other benefits. You also won't have payroll taxes automatically deducted for your earnings, so you'll need to set aside money and file quarterly estimated taxes.

You also need to account for your vehicle-related costs. Even if you earn the $19 hourly average, you'll have less money once you pay for gas and additional maintenance costs.

Also, personal auto insurance policies only cover personal vehicle use. You'll probably need to add commercial coverage to your policy in case you get into an accident while making deliveries. 

Is driving for Instacart worth it?

Before accepting any work, consider the opportunity cost, which is basically what you could be doing with your time instead. That said, here are some situations when driving for Instacart may make sense:

• You want to make money driving but don't want to transport passengers. If you're concerned about unruly passengers but want to use your car to make money, driving for Instacart is a good option. Keep in mind, though, that you'll still probably have to communicate with customers.
• You're seeking a flexible side gig. Instacart lets full-service shoppers work whenever they want and won't penalize you if you don't accept an order.
• You want a side gig that doesn't require an upfront investment. Instacart has a fairly low barrier to entry. You'll need to be at least 18 years old, authorized to work in the U.S. or Canada, and have a smartphone (iPhone 6s/Android 5.0 or newer), plus a functioning vehicle with minimum insurance.

How to make more money on Instacart

If you're seeking to boost your Instacart earnings, here are some things to try:

• Take orders during peak hours. You can use Instacart's shopper app to find times when demand is greatest up to a week in advance. Demand usually peaks during weekends and holidays.
• Shop multiple orders at once. If you're organized enough to shop multiple orders at once and pay for each one separately, doing so can maximize your earnings. You can also save on gas by delivering several orders at once.
• Look for bonuses. When driver supply is low, Instacart pays bonuses to get more drivers out there. You can also earn sign-up bonuses if you make a minimum number of deliveries in your first 30 days and referral bonuses if you get people to sign up to drive using your code.
• Treat customers well. Communicating with customers about their orders, including any substitutions, and bagging their items with care can help you maximize tips. Instacart prompts customers to tip extra whenever you get a five-star rating.

Driving for Instacart can be a good way to supplement your income and earn money quickly. But be sure to consider the costs, as well as whether your schedule allows you to drive at peak times, to determine whether this is the right side hustle for you.