Instacart cuts pay as tech unicorn fervor cools

|About: Instacart (ICART)|By:, SA News Editor

Looking to lower its costs in a tougher tech startup funding environment, Instacart (Private:ICART) is cutting how much it pays couriers to deliver groceries in San Francisco and L.A.

San Francisco contract drivers will now earn $1.50 per drop-off, down from a prior $4. Meanwhile, the commission drivers receive for each item picked up while shopping in stores has been cut by 50% to $0.25. The company insists drivers can still earn "$18 or even $20 or more per hour," after factoring tips.

Instacart, which counts Whole Foods and Target among its partners, was valued at $2B in an early-2015 funding round. It faces competition from Amazon (AmazonFresh), Google (Google Express), and various startups.

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