Instacart workers threaten walkoff as tip policy changes

Instacart's plans to make changes in how it compensates its pickers and delivery people has drawn sharp criticism from some among them, who are encouraging a boycott of the service when the planned changes go into effect later this month.

At issue is Instacart's announcement that it would no longer be collecting online tips from customers, but rather a "variable service amount" that would be pooled and used to pay store-based pickers and delivery drivers who participate in fulfilling an order. This change accompanies a move to raise guaranteed per-delivery commissions, as well as provide higher commissions on peak shopping days and provide shoppers with more flexibility in setting their schedules, the San Francisco-based grocery concierge service said.

Instacart said the change would provide higher guaranteed pay and more equitable compensation for all of its pickers and delivery drivers, while eliminating the issue of customers who give small tips or no tips. Instacart said shoppers could still accept cash tips from customers. It said the changes met requests from its shoppers for more consistent pay, more pay for busy days and greater consistency in their schedules.

But at least some workers — primarily delivery drivers, which unlike embedded store pickers are independent contractors — said the move would amount to "stealing" their tips, and would reduce their peak compensation and eliminate their incentive to provide superior service. They are using social media channels to encourage workers to stage a walk-off when the planned changes go into effect Oct. 16.