Instacart CEO Apoorva Mehta pays staff using tips, apologises
Instacart CEO Apoorva Mehta pays On the heels of a recently-filed class action lawsuit over wages and tips, as well as drivers and shoppers speaking out about Instacart’s alleged practices of subsidizing wages with tips, Instacart is taking steps to ensure tips are counted separately from what Instacart pays shoppers. In a blog post today said all shoppers will now have a guaranteed higher base compensation, paid by Instacart. Instacart CEO Apoorva Mehta, Depending on the region, Instacart says it will pay shoppers between $7 to $10 at a minimum for full-service orders (shopping, picking and delivering) and $5 at a minimum for delivery-only tasks. The company will also stop including tips in its base pay for shoppers.
“After launching our new earnings structure this past October, we noticed that there were small batches where shoppers weren’t earning enough for their time,” Mehta wrote. “To help with this, we instituted a $10 floor on earnings, inclusive of tips, for all batches. This meant that when Instacart’s payment and the customer tip at checkout were below $10, Instacart supplemented the difference. CEO Apoorva Mehta, While our intention was to increase the guaranteed payment for small orders, we understand that the inclusion of tips as a part of this guarantee was misguided. We apologize for taking this approach.” For the shoppers who were subject that approach, Instacart says it will retroactively pay people whose tips were included in payment minimums.
Previously, Instacart guaranteed its workers at least $10 per job, but workers said Instacart offsets wages with tips from customers. CEO Apoorva Mehta, The suit alleges Instacart “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart maintained that 100 percent of customer tips went directly to shoppers. Based on this representation, Instacart knew customers would believe their tips were being given to shoppers in addition to wages, not to supplement wages entirely.”