Cashing in on COVID
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The Cost of Convenience
When the coronavirus started getting real, Norbert and I were in Puerto Rico. Early on, before the quarantine was put in place, I made a trip to Costco and stocked up on staples like pasta, flour, and canned veggies. (Stocking the freezer isn’t a good option on an island where the power goes out frequently.) We filled the fridge with fresh produce and local fruit. The next day, the governor gave orders for us to stay home at all cost, except for emergencies. Thankfully, we were ready.
For the next two months, Norbert and I hunkered down—and ate every meal at home. I don’t think I’ve ever gone such a long stretch of eating solely home-cooked meals, but I can’t complain. Luckily, I married a man who gets great pleasure from cooking. We dined like royalty for every meal!
About once every two weeks, Norbert would make a trip to our local grocery store to buy fresh produce and we bought fresh fish from a local fishmonger, but besides that, we weren’t seeking food outside the home. Several restaurants in our neighborhood were offering take-out but we never ordered out. We had everything we needed at home.
Things were a bit different when we got to Miami. I was well into my third trimester, Norbert was working a ton, and the infection rate in Miami was much higher than it had been in Puerto Rico. Given these factors, we had a much harder time getting groceries. Norbert didn’t have the time with his work schedule and he didn’t want me potentially exposing myself by going into stores.
Ever since the pandemic started, I had been hearing everyone rave about Instacart, so I decided to give it a try. I put in a big order at Costco and another one at Publix. For the first round, I was happy with the results. Our Costco order arrived at our doorstep and I used the contactless pick-up option for Publix. Yes, there was a delivery fee for Costco but the service fee was waived at Publix if I picked it up instead of having it delivered.
Last week, it was time for another Costco order. Once again, everything went smoothly and the groceries arrived—as if by magic—on our doorstep. One of the items had its Costco price tag, and I was surprised to see that we had paid an extra $20 for this one item through Instacart. I contacted Instacart about the discrepancy, to which they responded that their pricing policy depended on the retailer; some offered “Everyday Store Prices” while others had “Higher than in-store prices.”
As it turns out, Costco and Publix are both stores where Instacart users pay higher prices. Foolishly, I had assumed that the service fee, tip and delivery fee were the only additional costs. Little did I know, I was paying 20-40% more on each item that we ordered; I have no way to know for certain because I only have a receipt from Instacart, which doesn’t show the actual prices charged in-store.
As I started looking into Instacart’s business model, I found that it’s far from magical. As it turns out, the consumer isn’t the only person getting screwed over; Instacart’s shoppers are, too. Like all gig workers, they have few employee protections, even when they’re engaged in “essential” work, like grocery shopping during a pandemic. Although Instacart claims to offer two weeks of extended pay for any shoppers who contracted coronavirus or were placed on mandatory quarantine, they haven’t been forthcoming with paying their sick shoppers what they promised, hiding behind the fine print.
I guess I shouldn’t be surprised that Instacart is a money-hungry company that doesn’t take care of its employees. Like other apps, such as UberEats and DoorDash, they’re cashing in on the pandemic. People using these apps might think that they’re supporting local businesses like their favorite neighborhood pizzeria. Unfortunately, small businesses get screwed when the third-party delivery apps charge them 30% of each order plus additional fees—while mistreating their drivers in the process.
If something seems too good to be true, it probably is. It's on us to do our homework and find out about the ethical (or unethical) practices of companies that we give our money to.
Tip of the Week
Join forces with friends & family to make joint grocery runs instead of relying on apps like Instacart
Order directly with restaurants instead of through third-party apps like GrubHub and Door Dash
We call restaurant workers “essential” but we don’t treat them as such, so leave a generous tip!
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