Over the coronavirus pandemic period, many people are now relying on online food delivery services to stock their homes. It’s during this time where we are limited to visiting grocery stores that Instacart has become the goliath for the grocery delivery services. This April, Instacart sales were up 5 times more than a year ago in the financial reports. Instacart has also raised $225M earlier this month, an evaluation approaching $14B which is almost double the evaluation 18 months ago. Apoorva Mehta, the Instacart CEO, is now relaxing as he watches his business grow.
Instacart vs Dumpling Grocery Delivery Services
Wait! Let’s not assume that, as a startup grocery delivery service Dumpling is now flipping the gig economy upside down. Last week it was announced that Dumpling was able to raise $6.5M for a total of $10M in funding. The service which was founded in 2017 helps people create independent delivery services. According to the CEO, they felt that the sharing economy companies like Instacart are treating workers unfairly. They, therefore, came up with Dumpling which treats the prospective entrepreneurs as sole proprietors. The company is now helping over 2,000 people start their own business over the pandemic and customers are now ordering 20 times more than last year. You only need to pay $10 to join and the shoppers pay $5 for each service or $39 for a monthly subscription. Those in Dumpling say they enjoy independence stating that they now earn more revenue and insulation from the anti-gig worker legislation.
It is reported that in March and April this year, Instacart workers demanded better protection against the pandemic and better payment, something that Instacart claimed the strikes had no impact on. For Dumpling, they are confident that independence will solve this issue. This will not be easy though as Dumpling workers have to find their customers and they are in trouble if buyers fail to pay.
That said, both businesses have their advantages which are appealing to investors. It’s upon each business to keep them. As for Dumpling, they have said that they are on a mission to make Dumpling a trusted partner that makes anyone interested grow their business.
What are your thoughts on these two rivals? Let us know in the comments
This article originally published on GREY Journal.