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Instacart’s app has changed grocery stores for good


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  • 2 years later...

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and in less than 2 years I read this....

And Instacart will be the first to tell you. After facing backlash over its controversial worker compensation policy, the delivery startup has announced a change to how its couriers get paid.

  • Under the old system...Instacart would put customer tips toward workers’ minimum pay guarantees, “in effect using them to subsidize their own payouts,” per the NYT.
  • Under the new system...Instacart workers will get full tips from customers, which will be calculated separately from Instacart’s own contribution to employee compensation. Workers who lost out on tips under the old system can get back pay, too.

It was more than just Reddit outrage that drove Instacart to make the change, though. We hear class action lawsuits can be quite persuasive—and Instacart was facing one alleging it “intentionally and maliciously misappropriated gratuities.”

Zoom out: Workers in the gig economy have faced uncertainty over their compensation, “coping with opaque policies, dizzying technology changes, and black-box algorithms,” the NYT wrote. Now, those workers are pushing back.

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