By 3.11.16

Instacart, the startup that companies like Target and Whole Foods are using to offer delivery without hiring their own fleet of drivers, has a lot of competition. Even Google is joining the fresh grocery delivery biz in some of Instacart’s key markets, like San Francisco and Los Angeles. The company is cutting driver pay and advertising to their customers, hoping to maybe make money on most of their deliveries soon.

Early on, drivers were guaranteed $10 per hour whether they actually had deliveries to make or not. According to the Wall Street Journal, drivers will have a guaranteed rate of $1.50 per delivery, when they now get at least $4.

Drivers are supposed to receive tips on top of that, and the company claims that their drivers will make about $15-$20 per hour after adding up base payments, tips, and commissions that they may receive for picking up items from a store. Remember that drivers fuel up and maintain their own vehicles for deliveries.

“We have made some recent rate changes to reduce variability in how much shoppers earn,” the company told the Wall Street Journal in a statement, “and we are constantly innovating to help shoppers get more orders.”

Grocery-Delivery Startup Instacart Cuts Pay for Couriers [Wall Street Journal]

Instacart Gets Red Bull and Doritos to Pay Your Delivery Fees [Bloomberg]