Controversies

Company response

• Denial — Instacart

  While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter

Source excerpt

• The DOJ's Civil Rights Division says it has reached a $5 million settlement with Maplebear Inc., which operates the delivery service used by Americans to get groceries sent to their front doors. The resolution addresses allegations that the company purposefully discriminated against U.S. and American workers based on country of origin

• Instacart will be required, under the settlement, to set up a $4 million fund to compensate applicants who may have been wronged, and another $1 million in civil penalties.

• While we maintain that our practices complied with all applicable laws and regulations, we’re pleased to have resolved this matter so we can keep our full focus on delivering on our mission for customers, shoppers, retailers and brands.

Company response

• Denial — Instacart

  does not and will not engage in surveillance pricing.

• Denial — JetBlue

  does not use personal information or web browsing history to set individual pricing.

• Denial — Delta Air Lines

  Delta also denied using personal data to individually price fares

Source excerpt

• The Federal Trade Commission (FTC) said it launched an inquiry into nine companies, ordering them to provide information about how they use consumers' and workers' personal data to set prices and compensation.

• Federal regulators announced Wednesday that they are examining whether major airlines, ride-hailing companies, delivery services and retailers are using personal data to charge different customers different prices for the same products and services or determine how much gig workers are paid.

• The orders were sent to Delta Air Lines, United Airlines, JetBlue, Lyft, Uber, DoorDash, Instacart, Target and Walmart, according to the FTC.

Source excerpt

• Krumbah was killed Monday during a deadly shooting at a Fred Meyer store in Richland, Washington, CNN previously reported.

• Instacart, the grocery delivery service that Justin Krumbah worked for, donated $50,000 to a GoFundMe account that was set up for his funeral costs, according to a statement from the company.

Company response

• Clarification — Instacart

  In a statement Sunday, Instacart said it plans to distribute new health and safety supplies for its full-service workers, known as shoppers, and launched a default system for when customers are asked on the app if they want to tip, "ultimately helping shoppers earn higher, more consistent tips."

Source excerpt

• In a statement Sunday, Instacart said it plans to distribute new health and safety supplies for its full-service workers, known as shoppers, and launched a default system for when customers are asked on the app if they want to tip, "ultimately helping shoppers earn higher, more consistent tips."

Company response

• Remediation — Instacart

  On Sunday, Instacart responded to the cries of its workers. They announced that they would be providing in-house hand sanitizer and would change the default tip settings.

• Remediation — Instacart

  We are extending this assistance for another 30 days – through May 8, 2020 – to ensure our community continues to be supported during this rapidly evolving situation.

Source excerpt

• They say the company hasn’t done enough to safeguard them against the illness.

• Instacart workers are holding a strike across the US on Monday to demand more protections from the company.

• Workers for Instacart and Amazon are striking on Monday to demand stronger health protections and better pay. Instacart’s gig workers nationwide will be refusing orders to pick up and deliver groceries, while Amazon warehouse employees in Staten Island are walking off their jobs.

Company response

• Denial — Uber spokesperson

  "Instacart is facing a new challenge in the US from a Chilean upstart, and it's unfortunate that their first move is litigation instead of competition," a spokesperson for Uber told Engadget.

Source excerpt

• "Instacart is facing a new challenge in the US from a Chilean upstart, and it's unfortunate that their first move is litigation instead of competition," a spokesperson for Uber told Engadget.

• In a legal brief, Instacart says Cornershop tried to hide the origin of its catalog images by modifying their file names.

• Instacart has sued Cornershop, the grocery-delivery startup Uber acquired last year to expand its food footprint. The company alleges Cornershop stole product images and other intellectual property.

Company response

• Denial — Instacart

  “We believe the accusations made in this complaint are without merit,” Instacart said in a statement on Thursday.

Source excerpt

• Karl A. Racine, Attorney General of the District of Columbia, sued Instacart this week on various charges. He says the company charged DC customers millions in optional service fees that were disguised as tips for drivers. It also failed to pay hundreds of thousands of dollars in sales taxes on those delivery and service fees.

• The specific allegations against Instacart include: “charging District consumers millions of dollars in deceptive service fees,” “misleading consumers about how service fees contributed to worker pay,” and “failing to pay hundreds of thousands of dollars in District sales tax.”

• “We filed suit to force Instacart to honor its legal obligations, pay DC the taxes it owes, and return millions of dollars to District consumers the company deceived,” Racine said.