Instacart, a San Francisco grocery shopping and delivery startup, announced Monday that it would allow its shoppers and drivers to become part-time employees, capped at 30 hours per week, rather than independent contractors. The move began in Boston, and it now moves to Chicago before expanding to all contractors nationwide.
Under the arrangement, new part-time employees will not receive health care, but the company will cover other costs, including workers’ compensation and payroll taxes (such as unemployment, social security, and Medicare). In light of the news, an overwhelming majority of the contractors are opting to become part-time employees.
Instacart, which was founded in 2013, lets customers purchase groceries online so Instacart "shoppers" can then purchase the items directly in-store. The order is next handed off to drivers, who finally deliver them to a customer’s door. Over the last two years, the company has received more than $274 million in venture capital and expanded to various cities nationwide.
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