Wednesday , September 30 2020

Instacart threatens to withdraw from Seattle if new law on hazard payment is passed

(Instacart photo)

Instacart said it may not be able to continue operations in Seattle if a law The demand for a risk payment for delivery workers will go out next week. The grocery company emailed customers of the "unconstitutional legislation" and asked them to write to the Seattle City Council against the bill. "Your access to the same day delivery of food is at risk," said Instacart.

The warning comes at a time when thousands of people are using food delivery services to avoid exposure to the coronavirus.

The legislation Instacart is fighting would require gig economy companies to pay Seattle drivers $ 5 in addition to their regular tariffs for every delivery or trip they offer. Danger payment is intended to offset costs and risks that drivers face during the pandemic, e.g. B. the purchase of protective equipment and the cleaning of vehicles between trips.

Council members Andrew Lewis and Lisa Herbold introduced emergency legislation in May. If it is accepted, it will take effect immediately. The hazard payment mandate would remain largely in place for three years after the Seattle Coronavirus emergency ended.

The hazard payment would apply to gig workers who provide food, grocery and rideshare services in Seattle with more than 250 workers worldwide. A vote on the bill is planned for Monday.

Uber and Lyft raised concerns about the bill when it was introduced. Lyft said the legislation could jeopardize drivers' eligibility for government relief approved in the coronavirus stimulus packages.

The demand for Instacarts Service has increased more than 300% year on year as many customers have avoided traditional grocery shopping due to the pandemic. Instacart is hiring thousands of new employees and buyers to keep up with demand. TechCrunch reports. The company right now raised another $ 225 million this weekworth nearly $ 14 billion to fight Walmart, Amazon, Kroger and others.

Instacart is also experiencing unrest among its existing buyers. Workers supplying food for Instacart organized a strike in March demanding personal protective equipment and hazard payments.

To update: Instacart has doubled its position in a statement to GeekWire:

With a negligent vote, the city council could eliminate Seattle's only affordable and accessible grocery and prescription drug delivery service, take away flexible earning opportunities for 5,500 people, and threaten the economic future of more than 90 neighborhood and region stores trying to serve customers to use . We urge the City Council to review this legislation and work with us to find an advanced solution that best serves Seattle.

About Kylo Crowther

Kylo Crowther is a housewife who is fond of social media. She is also a blogger.

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