Started by

Tommy Thompson

Chief Executive Officer Fidji Simo,

INSTACART

Over the last few years, I have reconstructed my life to be a productive member of our community. With this I chose a line of work that gives back. This opportunity has now been put into jeopardy by a large corporation that chooses to exploit its workers rather than reward them. This service doesn't only serve access to convenance but also the disabled and elderly who haven't the means to get themselves out and do their shopping. Myself, and many like me, take great passion in providing for our community and putting forth an actionable bill onto our ballot gives people who provide this service a way to continue to work.

Just recently Instacart decreased our base pay by $3, bringing it down to $4 and they have removed mileage pay. This is the third decrease since 2019 and as gas and commodities continue to rise the cost of operation for drivers becomes harder and harder to accommodate. You do this every year. But only to those who have shed actual blood, sweat, and yes sometimes tears to deliver fresh groceries to your customers’ doors. But what has CEO Apoorva Mehta given up? What cuts were made at 50 Beale Street?

Instacart and other gig companies like them, have now proven themselves to be leading corporate vampires, leaching off the backs of hard working “Independent Contractors”. In recent years this company has had an exceptional profit margin at the cost of lower base pay for the shoppers and drivers who carried this company into the next level of app-based shopping.

Instacart is worth $39 billion. This was its valuation as of March 2021, and it is 19 times higher than the company's 2016 valuation. Launched in 2012, Instacart was valued at $2 billion just four years later in 2016. It saw a significant jump in its value from 2017 to 2018 when it more than doubled in a year, going from $3.4 billion to $7.6 billion.

The company then saw steady growth in its value until it jumped significantly again in 2020, when its sales increased exponentially due to the COVID-19 pandemic lockdowns. In 2019, Instacart made $7.1 billion in sales, and in 2020 it made $23.42 billion.

In that same timeframe, and after CFO Ravi Gupta bragged to the press about having hundreds of millions of dollars of cash on hand, contractors have seen their take home pay decrease by yet another 40% right before the holidays. We wish we could say this was the only time it has happened. A small sacrifice for the greater good of making sure a company survives. But this has happened before. And before that.

Chief Executive Officer Fidji Simo, WE SEE YOU! Your company went along with California’s PROP 22 to avoid a logistical nightmare having to provide and relabel shoppers and drivers from “Independent Contractors” to employees. With this your company got to avoid the responsibility of providing fair pay and employee protections covered by specific labor laws entitled to employees. Also, avoiding tax responsibilities under the definition of employee.

SURPRISE! SURPRISE! There are 130,000 shoppers in California alone and they average $409 in adjustments a week. That would Make Instacart’s payout $53,170,000 per week. If that total is $53,170,000 per week, then it would be $2,764,840,000 per year just for California shoppers alone. Instacart has more than 600,000 Instacart Shoppers according to Influencer Marketing Hub. Now take the remaining numbers. If there are 600,000 shoppers minus 130,000 in California and each does 50 batches a week at $4.00, the total payout would be $17,200,000 and if that total payout is $17,200,000 per week, then it would be $894,240,000 per year divided between the remaining 470,000 shoppers combined. With this example no one could disagree that the payouts for California are significantly bias towards the rest of the country’s shoppers. Where is equality for the rest of us, Ms. Fidji Simo?

There are 1.3 million gig workers in California, including 209.000 Uber drivers and 200,000 Door Dash drivers. So, why is that the rest of the remaining gig workers across the U.S. and Cananda not receiving equal treatment and fair wages for providing this service to millions? And why do companies like Insta Cart continue to slash base pay? The reason is simple. They would rather exploit its workers rather than reward them with adjustments favorable to the shoppers and drivers, who by the way carried them through the pandemic relentlessly. So, briefly this is the law that these companies back to avoid any responsibilities to those of us who sacrificed our health a, wellbeing, our other commitments, including families.

What Proposition 22 does: Wage & healthcare policies for app-based workers

In November 2020, California voters passed Proposition 22 by a wide margin, with 58% in favor. The law defines app-based rideshare and delivery drivers as independent contractors and puts in place new wage policies that require drivers to receive guaranteed minimum earnings. App-based companies are also required to offer new health and injury benefits. Guaranteed earnings = 120% of local minimum wage + 30 cents per mile. Earnings for app-based workers must now equal at least 120% of the local minimum wage and 30 cents per mile. If payments for services are lower than the guaranteed minimum, app companies must offer extra payment to meet the minimums.

I'm looking to mirror this bill that was passed in California that provides independent contractors and gig workers a livable wage that falls under the guidelines of this bill, with a few ideas from another petition that was published in 2016 by Jennifer Mooney in Florida.

• ·         An amendment to our contract, that this cannot be lowered.
• ·         Full and complete customer addresses for every order BEFORE BATCH ACCEPTANCE.
• ·         Full and complete item list BEFORE BATCH ACCEPTANCE.
• ·         The installation of a clear deactivation and appeals process for contractors.
• ·         The creation and installation of a real Shoppers United Council that will provide input on all future decisions affecting contractors elected by US, the shoppers.
• ·         The creation of Instacart XL for large orders so that shoppers with the proper insurance and resources can deliver.
• ·         An order decline button on the dashboard doesn’t affect our cancellation rate or metrics in any way.
• ·         The installation of a new rating system that requires customs to leave and complete description of the issue for ratings 3 stars and below.
• ·         Installation of a label that shows if a customer’s order is place using EBT and a minimum of $15.00 paid by Instacart on top of batch pay for these orders accepted by shoppers.
•  Access to promotions for all shoppers at the same time, not just the selection of a few, for the register area.
• allowing only a tip increase and eliminate the lowering of tips after delivery. Preventing tip baiting. 

I'm reaching out to all who support a way forward to improve and protect the shoppers and drivers, who sustain and build this company going forward. For those of you who know me in my local area, and those that don’t across my beautiful State of Oregon, I'm reaching out into our communities to find support for a movement that will help introduce a bill onto the ballot that supports our delivery service community.

Please take time to look Prop 22 up in California and help us push this forward onto our ballot.

Let us join and be a voice in our communities. Loud voices speak a big volume and remember change starts with us. Please share and pass this along to everyone you know.

 

Thank you all for your time and care.