As e-commerce continues to grow its presence in the marketplace, new industries have emerged to meet the demand of online orders. One such industry is grocery delivery services, and Instacart has become a leading player in this field. However, the question remains: is Instacart considered an independent contractor, or is it an employer?
The answer is not simple. Instacart operates as a platform that connects customers with personal shoppers who purchase and deliver groceries. Instacart shoppers are independent contractors, which means they are not employees of the company. As independent contractors, they are responsible for their own expenses, such as gas and car maintenance, and they set their own schedules. They are also responsible for their own taxes and insurance.
The issue of whether Instacart shoppers should be classified as employees has been debated for years. In fact, in 2015, Instacart settled a lawsuit filed by shoppers who claimed they were misclassified as independent contractors and denied employment benefits. However, the settlement allowed Instacart shoppers to remain independent contractors but also offered them some perks, including a minimum hourly wage guarantee.
The classification of Instacart shoppers as independent contractors has both advantages and disadvantages. Shoppers have the flexibility to work when they want and earn money on their own schedule. They also have the freedom to choose which orders they want to fulfill. However, they are not entitled to employment benefits, such as healthcare and workers` compensation. They also do not have the same legal protections as employees, such as the right to organize or negotiate for better pay.
Overall, the jury is still out on whether Instacart shoppers should be considered independent contractors or employees. While the benefits of being an independent contractor can be attractive to some, others may feel that they are being exploited and deserve the protection and benefits of being an employee.
In conclusion, Instacart shoppers are currently classified as independent contractors, which means they are responsible for their own expenses and taxes. However, this classification is still subject to debate, and the future may hold changes in how Instacart and other companies in the sharing economy categorize their workforce.