Instacart president Carolyn Everson said Friday she will step down at the end of the year, just three months after she joined the grocery delivery service company, CNBC reported. This comes after Seth Dallaire, head of advertising at Instacart, left the company for Walmart in October.
According to CNBC, Carolyn Everson spent more than 10 years at Facebook as its ads chief. She was seen as one of the most prominent women behind Facebook’s COO Sheryl Sandberg, but left the company after Marne Levine – not Everson – was promoted to chief business officer last summer.
The decision to leave Instacart appears to be a mutual one between Carolyn Everson and the company. CNBC reported that Carolyn Everson posted on Facebook that, as her 50th birthday approaches, she will take time off before deciding on her next step.
The ability to quit a job, and then take time off to figure out what to do next, is a privilege. My best guess is that most Instacart drivers are not paid enough to be able to take time off in the way that Carolyn Everson can. The Wall Street Journal reported she had only been at Instacart for four months.
Instacart told The Wall Street Journal that they wouldn’t replace Ms. Everson at this time, and declined to comment further.
Ms. Simo wrote Friday that the company’s current leadership team can take on more roles, and that there was a “mismatch” between Instacart’s priorities and what Ms. Everson was looking for. Ms. Simo wrote that Ms. Everson’s departure gives the company an opportunity to make organizational changes that will put it in a better position.
It is unclear what Instacart will do next. Personally, I think the company should focus on how Instacart can help people who have disabilities to get groceries. We are still in a pandemic, and it can be very risky for people who are immune-compromised to shop in person (where some people aren’t wearing masks). Instacart needs to continue service as it has been – and without an increase in price.
The tips you gave to the Instacart workers who brought groceries to your door probably did not go to them. Sometimes, it takes a class-action lawsuit to influence a company to do something it should have been doing in the first place. The result is that Instacart will stop stealing the tips that consumers give to Instacart workers.
NBC News reported that the complaint in the lawsuit alleges that Instacart “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart maintained that 100 percent of customer tips went directly to shoppers. Based on this representation, Instacart knew customers would believe their tips were being given to shoppers in addition to wages, not to supplement wages entirely”.
In a post on Medium, titled “State of Pay – Doing Right By Our Shoppers” Instacart provided information about what happened and the changes it will make. From the Medium post:
After launching our new earnings structure this past October, we noticed that there were small batches where shoppers weren’t earning enough for their time. To help with this, we instituted a $10 floor on earnings, inclusive of tips, for all batches. This meant that when an Instacart’s payment and the customer tip at checkout was below $10, Instacart supplemented the difference. While our intention was to increase guaranteed payment for small orders, we understand that the inclusion of tips as part of this guarantee was misguided. We apologize for taking this approach.
Instacart will retroactively compensate workers for when their tips were included in minimums. “For example, if a shopper was paid $6 by Instacart, to compensate for our mistake, he or she will receive an additional $4 from Instacart”.
In addition, Instacart is instituting a higher minimum floor payment on all batches. Today their minimum batch is $3. Depending on the region, the new minimum batch payment will increase to between $7 and $10 for full service batches and $5 for delivery only batches. “Any tips earned by shoppers will be separate and in addition to Instacart’s contribution.”