Walmart Spark Drivers Cut in Pay Coming
Walmart Spark has been the highest paying delivery option for independent contractors for a while now. We all knew the high base pay could not last and would be reduced eventually. In my market, that day was today – September 1st, 2024. Base pay was reduced by $2.75 for curbside orders – Shop and Deliver orders saw a decrease in pay around August 1st, 2024.
What is Happening with Walmart Spark
For those that do not know, Spark is a third party delivery service that Walmart is heavily invested in. Similar to One Bank, a banking option that Walmart gives very good perks to, Spark is not wholly owned by Walmart. This gives both platforms the option to work with companies other than just Walmart.
Walmart Spark, as it is commonly referred to as Walmart likes to brand certain things, works with Gamestop, Sally’s Beauty Supply and a few other stores.
By working with independent contractors similar to how Uber Eats and Doordash work, Walmart can better manage costs to get merchandise and food delivered.
One way to manage costs is to cut base pay.
How Walmart Spark Works
Just like Doordash or Uber Eats, and the many other delivery apps, drivers are logged into an app that shows them the orders available. Unlike Doordash, drivers can pick and choose their hours from day one, no need to worry about an acceptance rate or other arbitrary metric to be able to work.
Uber Eats offers this style of working to drivers as well.
Doordash has made many changes, making it harder for most drivers to maintain their ability to work anytime. As they can’t get hours drivers will seek out other platforms.
Walmart Spark, offering what they do for base pay (8 to 10 times that of Doordash and Uber Eats) has become quite popular with drivers. The way Walmart has marketed the service has certainly brought the customers in droves.
There are a few types of orders with Walmart Spark, the most popular are Shop and Deliver and Curbside. They pay the best and are the most plentiful.
With this availability being set to maximum as far as the platform letting drivers work means there are going to be more drivers taking ordersWhen this happens, the platforms will lower pay because they no longer need to attract drivers to complete orders. The platform has reached whatever milestone Walmart wanted and now they are adjusting what they are willing to pay to get things delivered.
Walmart is Not Alone
Talk to most Doordash drivers that were around before then during and after the pandemic. Most will tell you the same thing. They made more money in 2018 to 2020 than they do now. They made MORE money during the pandemic as no one wanted to drive at all.
Many made YouTube videos bragging about their earnings. This helped spur people into signing up, people wanting/needing extra money.
When I signed up in late 2023 and the base pay then was $15 for Shop and Deliver (only one customer at a time) and Curbside was around $12.50.
The base pay for Shop and Deliver dropped to $11.50 around Easter this year in my area. Now they dropped Curbside base pay.
I have noticed A LOT more drivers in my area as well. Taking anything. I have seen $12 Shop and Deliver orders going 20 miles one way get snatched up in seconds.
Pay that low is not worth making, there is no money being made there. I understand some drivers “dirty stack” and pick up orders from other platforms that are going that way but that is so rare. It is also dangerous to your pocketbook as you are losing money most of the time.
The drop in base pay is a natural step for a company like Walmart. They are simply following the business hand book here – over pay early to run out competition or get support to reach milestones then drop the pay.
I see base pay dropping for Walmart Spark dropping more in the future too.
What are your thoughts? Do you use Walmart Plus to get groceries and such delivered?
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