COMP NEWS – Instacart is giving employees company-wide a two-part cash bonus starting in December in an effort to retain talent.
Instacart Inc. will pay out its first companywide cash bonuses starting in December, said people familiar with the matter, as the grocery delivery provider aims to motivate staff after delaying its initial public offering.
The cash bonus is a shift in the company’s efforts to reward and retain employees. Instacart has historically given out equity rewards to boost retention.
The San Francisco company told employees last month that going public was unlikely this year due to tumultuous market conditions. Chief Executive Fidji Simo said at the time that the company was offering a special cash bonus to reward staff, and that Instacart is finding additional ways for employees to get value.
Employees will receive roughly 40% of the payment in December, and the rest will be paid out July 2023.
Employees received the terms of their bonuses late last week and are expected to receive 40% of the payment on Dec. 9 with the remainder paid in June 2023, some of the people said. Staff will still receive the bonus if the company goes public before the payout dates, they said.
The San Francisco company told employees that amounts were calculated using role, performance and tenure without manager discretion, and that it wouldn’t share the exact calculation with staff, according to internal messaging viewed by The Wall Street Journal. The bonus is planned for corporate employees, and not shoppers who fulfill delivery orders for the company. The payments are expected to range from thousands of dollars on the lower end to higher for more senior, longer-tenured employees, some of the people said.
Instacart is one of many businesses that boomed during the Covid-19 pandemic. While grocery delivery companies have continued to thrive, the competition has become much more fierce in the wake of
Delivery companies such as Instacart got a boost to their business as Covid-19 began spreading in the U.S. in 2020, prompting consumers to avoid shopping in person and instead order food online. Many shoppers have stuck with delivery, though competition remains fierce with other food-delivery companies such as Uber Technologies Inc. and DoorDash Inc. pushing into groceries. Supermarkets increasingly are looking for ways to control aspects of delivery operations in-house.
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