Dec 14, 2019 - Economy

Instacart workers organize for higher wages

Orion Rummler

In this illustration, a large digital mouse clicks on a bag of groceries — Illustration: Sarah Grillo/Axios Visuals

Thousands of Instacart contract "shoppers" — who fetch groceries for one of the largest on-demand companies in the gig economy — have gone on strike for higher wages, the Washington Post reports.

The big picture: Instacart shoppers said their wages were slashed in late 2018 when the company introduced an algorithmic pay system to estimate workers' earnings per job, per the Post.

Workers are making more since the company reversed a separate policy in February that used tips to supplement wages after it weathered heavy backlash, the Post reports.

Details: On Nov. 3, thousands of Instacart shoppers joined a three-day strike, according to rough estimates from organizers via Facebook. Some customers deleted the app and called for a boycott, per the Post. A few days later, Instacart announced plans to cut $3 quality bonuses offered for shoppers who received five-star ratings.

Background: Instacart settled a $4.6 million class action lawsuit in 2017 involving allegations of improper tip pooling and failing to reimburse workers for business expenses, which Instacart denied, per Vox.

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Instacart workers organize for higher wages

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