Does Instacart Pay For Gas? [A 2024 Update For Shoppers]
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One of the popular grocery delivery apps out there in North America is Instacart.
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If you want to make money delivering groceries as an Instacart Shopper, you may be asking if Instacart pays for gas or not. Knowing this will help you decide if Instacart is worth it.
It would have been possible to deliver food by bike or scooter when working for DoorDash because, for that, you are just picking up food at restaurants and getting it delivered to customers.
However, Instacart is different since most customers order bulk groceries. So, you definitely need a car to deliver items safely. But with a car, comes all the cost related to gas and maintenance.
As an Instacart Shopper, you can expect to pocket around $15 to $25 per batch. But here’s the real deal: after accounting for gas and taking care of your car, is this earnings range enough to make it worthwhile? Given the current surge in gas prices, it’s a question worth pondering if you’re looking to make a profit.
But, what if Instacart pays for gas? Well, the quick answer to this question is: NO. Instacart doesn’t pay for gas. However, if you continue reading, I will show you how you can save on gas to make a profit as an Instacart Shopper.
Does Instacart Reimburse For Gas?
No. Instacart does not reimburse or pay for gas on behalf of Shoppers. Shoppers are responsible for covering the costs associated with gas and the wear and tear on their vehicles themselves. This is because Instacart considers Shoppers as independent contractors, not employees.
So, before you start working for Instacart, you have to be prepared to pay for all your car-related expenses on your own.
However, the cool thing is that if you are an independent contractor, you can write off your gas expenses – plus mileage expenses if you file a tax return.
Even so, filing your tax return will be complicated or unsuccessful if you don’t keep records of your gas and mileage expenses.
Therefore, make sure you’re diligent about keeping thorough records of your expenses throughout the year. This will make tax filing more straightforward and accurate when the time comes.
What Is the Instacart Temporary Gas Reimbursement?
Instacart introduced the fuel assistance program in March 2022 to support shoppers due to the surge in gas prices.
The program talks about the implementation of a “Temporary Fuel Surcharge”, which is to add $0.40 to each order placed by customers.
When customers are placing orders, they will see the $0.40 surcharge attached to each order. This fee is given to shoppers to support their gas expenses.
While $0.40 isn’t much money, this initially helps cut the cost of gas for Instacart Shoppers.
How Does the Instacart Temporary Gas Reimbursement Work?
As a shopper, when you open the Instacart app to accept batches, you will see those with the $0.40 surcharge benefit. So all you have to do is to grab only those batches.
That extra 40 cents might not seem like a lot, but it can really add up, and it’s in addition to what you’re already making through your hourly rate and tips.
If you want to save more on gas and see the importance of this Instacart temporary gas reimbursement program, I suggest that you do these as a shopper:
- Try to avoid accepting long-distance batches.
- Accept only high-paying batches.
Does Instacart Pay Mileage?
No, Instacart doesn’t pay mileage separately. The company has several factors that determine how much a Shopper earns per batch of orders completed, of which mileage or distance traveled is inclusive.
If you want to know these factors, here are they:
- Number of items.
- Type of items
- Driving distance
- The effort involved in shopping and delivering.
Image Source: Instacart
So, as a shopper, your income boils down to these factors combined. There’s no separate payout just for mileage (driving distance).
Let me emphasize this point: what I’ve been talking about mainly applies to full-service shoppers. In-store shoppers, who focus on grocery shopping without handling deliveries, can breathe easy as they don’t need to worry about mileage, gas, or maintenance expenses.
Do Shoppers Get Paid Hourly For Instacart?
Instacart pays based on deliveries completed, but not on an hourly basis. On the Instacart app, you can see the amount you can make for each delivery. It’s usually between $8 and $20.
This amount can differ depending on a few things: the number of items you’re delivering, how far the drop-off location is, whether the order is complex (sometimes it’s a double or triple order), and how much time you spend shopping for and delivering the items.
Besides the fixed pay shoppers receive for deliveries, they also get tips. If you’re a full-service shopper, you get to keep 100% of tips. But it’s a bit different for in-store shoppers.
When Do Shoppers Get Paid For Instacart?
Instacart shoppers receive their payment via direct deposit every Wednesday. This payment covers the orders completed during the previous week, from Monday to Sunday.
So, when you’re out working, remember that you can access your earnings on the following Wednesday.
However, if you need your money right away, Instacart has a fast payment option. They made this for Shoppers who can’t wait for the usual weekly payout.
With this fast payment, you can get your earnings on the same day, sometimes within just 2 hours. But this fast cash out is possible if you have a minimum balance of $5.
How Can Instacart Shoppers Save Money On Gas?
Now that you know that Instacart does not pay for gas, how can you save money on gas? Here are a few tips I’ve got for you.
As an Instacart shopper, your goal is to make a profit. I’m confident that with these tips, you can achieve that and have something to show for your hard work!
When Shopping For Gas, Use Cash Back Reward Apps
As a shopper, you have to use cashback apps when shopping for gas. The best cash-back app out there for gas shopping is Upside (formerly GetUpside).
With Upside, you can shop for gas to get cashback at many gas stations including Gelson’s, Shell, Valero, Circle K, Phillips 66, Sunoco, Mobil, etc.
Instacart has even partnered with Upside long ago. If you use Upside, you will get at least $0.35 per gallon in cashback for your first two fill-ups.
This is a special offer for Instacart shoppers because general users of Upside receive only $0.25 per gallon.
Once you have accumulated enough money on Upside, you can cash out via direct deposit, PayPal, or a gift card to various brands.
Keep Track Of Your Mileage For Tax Deductions
Since you are an independent contractor for Instacart, you are a business, and so you can claim a vehicle tax deduction.
For every mile you drive for work, you can get a certain amount deducted. Gig economy workers including those working for DoorDash, Uber Eats, Amazon Flex, Roadie, Lyft, and others – have the privilege of tax deductions on mileage because mileage can be taken as a business expense.
The IRS standard mileage rate is $0.585 per mile for vehicles used for business. So I encourage you to keep copious records of your mileage while doing Instacart. Important information you must keep records of when tracking your mileage are:
- The number of miles driven
- Reason for the trip
- Date
- Destination.
If you are not good with spreadsheets like me, you can use an app to automatically track your mileage. The best app I recommend is Hurdlr.
With Hurdlr, you don’t have to do the manual tracking since everything is automated. The app will track your mileage and help you get thousands of dollars in tax deductions (Hurdlr users get an average of $5,600 in tax deductions annually).
Work During Best Times
If you are earning a high amount of money per batch of orders as a shopper, then gas expenses won’t have a noticeable effect on your wallet.
Therefore, work during the best times on Instacart when earning rates are high. The best times to do Instacart are during peak or rush hours. This is from 4:00 p.m. to 9:00 p.m. on weekdays and any time on weekends.
This is usually when Instacart shoppers are hanging out at home, ready to accept their orders. It means more orders are pouring in, and the demand for shoppers is higher than usual.
So, if you decide to work during these busy times, you can make more money and get the most out of your gas.
Scan Your Gas Receipts For Rewards
Any time you shop for gas, you can keep all your receipts in exchange for cash rewards later. There are apps that pay you to scan receipts like Receipt Pal, Receipt Hog, and CoinOut that you can use to scan your gas receipts for money and gift cards.
The only thing you have to do is snap photos of your gas receipts and upload them to any of the apps to receive a few bucks.
While you won’t be making huge money, this is another easy way to save money on gas as an Instacart Shopper.
Frequently Asked Questions
How Much Does Instacart Pay Shoppers?
Instacart pays between $13 and $20 per delivery completed. For some batches, shoppers can earn up to $25. This is not hourly pay – Instacart doesn’t pay hourly but rather pays per batch.
Factors that determine how much a shopper can earn per batch are the complexity of the batch, the number of items ordered, the type of items ordered, and the distance driven to complete the delivery.
Does Instcart Pay Daily?
Yes! Instacart offers daily payments through its fast payment method. Typically, Instacart pays on a weekly basis, but shoppers also have the option to withdraw their earnings daily.
However, to access same-day earnings, shoppers need to have a minimum balance of $5 in their Instacart account.
Is Instacart Worth It?
Yes. Even though Instacart doesn’t pay for gas or mileage, you can still make more money if you work during the best times and track your mileage for tax deductions.
Another cool thing about working for Instacart is that you are an independent contractor, so you have the freedom to work on your own terms without having to answer to any boss. You are your own boss!
Final Words
Instacart wants shoppers to make profits that’s why the company introduced the temporary gas reimbursement. With that, you can make $0.40 for each order on top of your main earnings and tips.
Also, if you use an app like Receipt Hog to track your mileage and use a gas cashback app like Upside for gas shopping, you can literally cut down your gas expenses.
Even though Instacart might not offer top-tier pay, I genuinely believe that by focusing on peak hours and selecting the right batches, you can actually pull in some decent cash!
I hope this post was helpful! I wish you well with Instacart!
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Manuelo is an entrepreneur and a personal finance nerd. He is the founder of Dollars And Freedom. An expert in side hustles, online gigs, and everything about making money. His works have been featured on major financial publications, like Business Insider, GoBankingRates, Investopedia, Entrepreneur, and more. When he’s not busy with his blog or writing for others, you’ll catch him hanging out with loved ones or reading books on stoicism and self-development.
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