Not quite a "sharing" economy
February 11, 2019 6:01 AM Subscribe
Through the policy, workers were guaranteed a base amount of $10 per delivery; Instacart would apply tips to the overall payment, according to Business Insider. For example, if a customer tipped $4, Instacart would only pay an additional $6 to the driver. If the tip was $6, the company would pay even less — just around $4 for that delivery. Some observers characterized this as a deceptive business practice equivalent to tip theft, but because of the relatively unregulated nature of the gig economy, delivery workers had little legal recourse.
After having been called out
for using customer tips as a means to pay out less than otherwise would be required to delivery contractors, Instacart has reversed their policy
and will stop counting tips towards contractor base pay. DoorDash and Amazon Flex, however, have no intent on changing their similar policies