Instacart is changing a controversial policy on how it pays workers who pick and deliver grocery orders, after protests over a pay system instituted last fall.
The San Francisco-based startup said it would give workers the full tips from customers and stop docking parts of the tips from fees Instacart pays them. It will also offer back pay.
The retreat illustrates a delicate balance gig-economy startups struggle to maintain between keeping prices low for customers and paying their workers fairly. Fees associated with food delivery orders are often opaque for both customers and workers. Small changes to policies can have outsize effects on how much workers take home.