Instacart Shopper Strike: Activists Plan Walkout

Instacart Shoppers Prepare to Strike Over Pay and Working Conditions

A strike action is planned by a segment of Instacart shoppers on Saturday, as a demonstration against what they perceive as insufficient compensation and a lack of open communication from the company. The protest is being spearheaded by the Gig Workers Collective, an organization established in early 2020, although Instacart shoppers have previously engaged in organized walk-offs dating back to 2016.

Collective Demands and Previous Actions

The Gig Workers Collective, which represents approximately 13,000 of Instacart’s 500,000 shoppers, recently initiated a campaign encouraging customers to uninstall the Instacart application as a gesture of support for the shoppers’ requests. However, Instacart has not yet addressed the core demands put forth by the collective.

Key Demands Include:

• Payment per individual order, rather than per batch.
• Reinstatement of item-based commission structures.
• Protection against rating system penalties for factors outside of shopper control.
• Provision of occupational death benefits.
• An increase in the default tip percentage to a minimum of 10%, from the current 5%.

Shoppers intend to continue the strike until these demands are satisfactorily met.

Concerns Over Earnings and Policy Changes

Many shoppers express frustration that, despite Instacart’s substantial $39 billion valuation, earning a viable hourly wage on the platform is becoming increasingly difficult. Previously, Instacart guaranteed a minimum of $10 earnings per completed batch (a batch could include orders from one to three customers).

However, following a public apology from founder and former CEO Apoorva Mehta in February 2019 regarding the subsidization of this $10 minimum with shopper tips, the minimum batch pay was reduced to $7 for full-service shoppers – those who both select and deliver groceries.

Instacart characterized this change as establishing “a higher guaranteed floor,” noting the previous minimum was $3, though shoppers consistently received at least $10 due to the established minimum (funded, in part, by their own tips without their knowledge). The removal of this policy has reportedly led to reduced earnings for some shoppers.

Current Payment Structure

Currently, a shopper may fulfill three separate customer orders for a base pay of only $7. Instacart maintains that batch payment calculations consider factors such as item count, mileage, weight, and other variables. However, Willy Solis, a lead organizer for the Gig Workers Collective and an Instacart shopper, asserts that there is “no rhyme or reason” to how orders are grouped into batches.

He explains that orders within a batch are often geographically dispersed, requiring significant travel time between deliveries. Instacart contends that batching allows shoppers to earn tips on multiple orders from a single grocery store trip, but this relies on customers providing adequate tips.

The Issue of Default Tips and Wage Decline

The default tip option at checkout is currently set at 5%. The collective aims to raise this default to 10%, which was the standard on the platform in 2016. While customers can set higher tips, which then auto-populate as the default for future orders, shoppers continue to report insufficient hourly wages.

The Gig Workers Collective reports a significant decrease in shopper earnings over the past three months. Daniel Feuer, a shopper in Canada, recently penned an open letter to Instacart CEO Fidji Simo, illustrating a decline in his hourly wage over the past year.

Feuer attributes this decline to the company’s focus on profitability in the lead-up to its initial public offering (IPO), resulting in reduced batch earnings.

Challenges with Pay Calculation and Oversaturation

Shoppers also express confusion regarding how pay is calculated. Anni McClung, a shopper in Houston, Texas, questions why she receives the same $7 base pay for batches varying significantly in distance and number of items.

Shoppers attempting to clarify base pay calculations with Instacart’s customer service have reported being transferred between multiple representatives without receiving a clear explanation.

Instacart states that mileage is factored into base pay at a rate of $0.60 per mile (or $0.30 in California), but shoppers claim this is not reflected in their batch offers. Instacart has not clarified whether the $7 minimum includes the mileage compensation.

Impact of Pandemic and Current Market Conditions

Instacart expanded its shopper base by 300,000 during the coronavirus pandemic to meet increased demand for grocery delivery. The company reports that its shopper population has stabilized at around 500,000, with customer demand remaining four times higher than pre-pandemic levels.

Since March 2020, Instacart states that shoppers have collectively earned over $5.5 billion on the platform. However, as pandemic conditions evolve, shoppers observe a decrease in customer usage, making it more challenging to secure work through the app.

Shoppers in Nevada, Texas, and New York report that their markets are oversaturated with shoppers competing for a limited number of available batches.

Experiences of Individual Shoppers

JoJo Spatafora, a shopper in Staten Island, New York, notes a significant change in conditions since the beginning of the pandemic. She believes Instacart is aware of the over-hiring issue but has taken no action, prioritizing customers over shoppers.

The shift from a scheduled work system to an on-demand system in 2019 has also contributed to the challenges. Shoppers now compete to accept batches as they become available, requiring quick decisions with limited information.

Sharon Goen, a shopper in Las Vegas, Nevada, expresses concern about the physical demands of certain orders and the potential impact on her acceptance rate if she declines challenging batches.

Hopes for Change and Past Retaliation

Shoppers participating in the strike hope to gain the attention of CEO Fidji Simo. While Instacart states that Simo has been engaging with shoppers, she has not responded to the Gig Workers Collective’s open letters.

Some shoppers are skeptical that the strike will have a significant impact, citing a previous instance where Instacart allegedly retaliated against a strike by removing a bonus for five-star ratings.

Despite past setbacks, shoppers remain committed to advocating for improved working conditions and fair compensation, believing that continued action is necessary to achieve progress.