Instacart shoppers face unforgiving metrics: ‘It’s a very easy job to lose’

From today’s Los Angeles Times:

Five days a week, Ryan Hartson scours the picked-over aisles of Mariano’s Fresh Market in Chicago to fill grocery delivery orders for Instacart. He clocks in for his shift exactly on the hour — if he’s even five minutes late, he’ll receive a “reliability incident.” Within four minutes he must accept any incoming orders. Any longer and he’ll be kicked off the shift and risk getting an incident. Three incidents in a week and he’s at risk of termination.

“It’s a very easy job to lose,” Hartson said.

To avoid missing orders, Hartson schedules his bathroom visits — after four hours of work, the app notifies him that he has earned a 10-minute paid break. Meanwhile, Instacart managers use the app to see if he’s running behind on his orders. The app also tracks Hartson’s customer communications, automatically searching for specific terms to ensure he’s using Instacart’s preferred script. If he doesn’t, his metrics will take another hit.

Metrics define the experience of Instacart’s part-time workforce. Measured weekly for employees such as Harston is the number of reliability incidents; the number of seconds it takes to pick each item; and the percentage of customers with whom they correspond. Some former and current employees say 5% to 20% of shoppers in a store can be fired weekly.

Even in the data-driven tech world, Instacart stands out for its metrics-oriented culture, interviews with more than 30 current and former employees as well as documents and recordings reviewed by The Times reveal. This drive toward productivity helps Instacart’s profit margins, a vital step for a start-up that recorded its first-ever monthly profit in April, as the coronavirus pandemic heightened demand for grocery delivery.

Instacart says it has eased enforcement of certain metrics during the pandemic, but shoppers say company policies often ignore the realities of the job, leaving them in constant fear of termination over things out of their control.

Instacart says it evaluates shoppers on more than just speed and efficiency. Natalia Montalvo, the company‘s director of shopper engagement and communications, said the in-store shopper role was built on the premise of “flexibility, efficiency, innovation and customer service.”

“Efficiency and fulfillment of customer orders in a timely manner is important,” Montalvo said, “but it’s just one of many factors we look at in our overall business health and growth relative to other contributors” such as revenue derived from advertising for and partnering with consumer brands.

Read the complete article here.

He Has Driven for Uber Since 2012 and He Makes About $40,000 a Year

From today’s New York Times:

Uber’s public stock offering next month will make a bunch of people remarkably rich. Peter Ashlock is not one of them, although he has toiled for the ride-hailing company almost since the beginning.

Mr. Ashlock, who will be 71 next week, has racked up more than 25,000 trips as an Uber driver since 2012. His Nissan Altima has 218,000 miles on it — nearly the distance to the moon. His passengers rate him 4.93 out of five stars. His favorite review: “Dude drove like a cabdriver.”

While he is an integral part of Uber’s success, Mr. Ashlock is barely getting by. His 2018 tax return will show an adjusted gross income in the neighborhood of $40,000, better than 2016 and 2017. But he has maxed out his $3,200 credit limit at the local Midas car-repair shop and needs to come up with $5,000 to pay his taxes. He has Social Security but no savings to buy a new car that will let him keep working.

Silicon Valley has always been a lottery where immense wealth is secured by a few while everyone else must hope for better luck some other time. Rarely, however, has the disparity been on such stark display as with Uber. Its stock market value is expected to be about $100 billion, which would make it one of the richest Silicon Valley public offerings of all time.

Among those with something to celebrate: Uber’s founders, the Japanese conglomerate SoftBank, the elite venture capitalists Benchmark and Google’s GV, Saudi Arabia’s Public Investment Fund and the mutual fund giant Fidelity. Some have already cashed in. Travis Kalanick, Uber’s co-founder and chief executive until he was forced out after a series of scandals, reaped $1.4 billion by selling fewer than a third of his shares to private investors in 2017.

As independent contractors, drivers are not eligible for employee benefits like paid vacations or stock options. Uber said Thursday that it would offer bonuses of $100 to $10,000 to long-serving drivers. Its chief competitor, Lyft, did the same when it went public in March.

Read the complete article here.

Summer Job Isn’t What It Used to Be

From NYT “OpTalk” Blog, September 9, 2014 by Anna Altman:

Once upon a time, hard-working high school students who took a summer job or worked part-time during the school year got an edge over their unemployed peers. Not only did they earn some pocket money — which many students saved for college — but they were also likely to see increased earning potential long after they graduated.

Not only that, teenagers would prove their work ethic, make professional connections, increase their self-confidence and become more likely to graduate from high school in the first place.

But according to a recent article by Jessica Leber in Fast Company magazine, a summer paycheck no longer comes with many of these advantages. Ms. Leber cites a study published last month by Charles L. Baum and Christopher J. Ruhm for the National Bureau of Economic Research. The study looked at two groups, one of high school students in 1979 and another of students in 1997. It shows that, today, high school seniors who also work 20 hours a week are less likely to have increased earning potential later on than they might have been in 1979.

In concrete terms, the 1979 group was likely to see an 8.3 percent increase in wage-earning capacity, compared with a 4.4 percent increase for the 1997 cohort.

Furthermore, the earlier group was more likely to move into better-paying fields. “Senior year employment was predicted to decrease the probability of subsequently working in the relatively low-paid service sector for the 1979 cohort but to increase it for the 1997 cohort,” Mr. Baum and Mr. Ruhm write. For the latter group, the increase in the likelihood of low-paid service work offset “a portion of the benefit of the early work that otherwise would have occurred.”

Overall, Mr. Baum and Mr. Ruhm’s study concludes that working as a student isn’t what it once was: “Work experience during the high school senior year continues to predict positive effects on labor market outcomes 5-11 years after the expected date of high school graduation, but these beneficial consequences have attenuated fairly dramatically over time.”

That students who work during high school may be at a disadvantage for later earnings seems to confirm the degree to which the economy is proceeding on two tracks: one for low-wage earners, and another for students who are in a financial position to pursue internships or other opportunities that lead to connections.

Wages for Housework?

From today’s NYT “Room For Debate” Blog:

Housework is a necessary labor for families, but it is largely unpaid, except when others are hired to do it. Families may pay others to cook, clean or take care of their children, but they don’t pay themselves. This year, Italyconsidered a proposal in which the government, or in some cases the husband or partner, would pay wives for this thankless task. And a few years ago, India considered a similar bill.

Should the family member who does most of the housekeeping be compensated?

Read different perspectives on this provocative question here.

Does the Affordable Care Act create more part-time work? 2 perspectives

One of the objections to the Affordable Care Act is that it will encourages employers to cut employee hours to create more part time work in order to avoid the law’s requirement that it provide health insurance benefits for all full-time employees. This means that workers hours will be cut and as a result employees will find themselves without insurance and declining wages. Recently, two different economist have offered competing arguments for and against this objection.

Does the ACA’s requirement that employers provide insurance for all full-time employees create more part-time work?

The answer is yes according to Casey Mulligan, a professor of economics at University of Chicago. Read the full article here.

However, a recent analysis of the difference between predicted part-time work and actual part-time jobs created since the ACA went into effect shows that there is no evidence to support this objection. Jared Bernstein, a Senior Fellow at the Center for Budget Policy and Priorities, investigated the data and found no proof for this commonly made criticism of Obamacare. Read the full article here.