The CEO of human cloud, grocery delivery firm Instacart wrote in a blog post the company is revising its pay policy after an outcry from its independent contractor workers, but Forbes reports Door Dash and Amazon Flex are sticking with their similar pay structures.
Instacart. In a Feb. 6 blog post, Instacart founder and CEO Apoorva Mehta wrote the company will keep tips from consumers separate from its contribution to its independent contractor shoppers. It will also raise the guaranteed compensation floor for shoppers and retroactively compensate shoppers from during the time it included tips from consumers in its minimum pay.
“It’s our responsibility to change course quickly when we realize we’re on the wrong path and we believe today’s changes are a step in the right direction,” Mehta wrote.
Forbes wrote the company had used tips from customers to offset its minimum, guaranteed payment of $10 per job to independent contractors. The move had angered workers.
Recode reported that Instacart in one instance had used a $10 tip to subsidize the pay, netting him only 80 cents in base pay.
Meanwhile, Door Dash and Amazon Flex, which both use a similar pay structure, will continue to count customers’ tips toward their guaranteed minimum wages for their independent contractor delivery drivers, Forbes reports.