instacart gig-economy delivery labor independent-contractor prop22
related: Uber DoorDash Lyft Flex Association
Who They Are
Maplebear Inc. (dba Instacart). Grocery delivery platform ($3.0 billion revenue, 2024) that connects customers with “shoppers” who select and deliver groceries from partner stores. Instacart operates primarily through independent contractor labor — shoppers are classified as non-employees, receiving no benefits, no minimum wage guarantees, and no workers’ compensation.
Instacart’s political significance is primarily as a member of the gig economy coalition that successfully passed California’s Proposition 22 (2020), spending $200+ million collectively (with Uber, Lyft, and DoorDash) to exempt gig workers from AB5’s employee classification requirements. Instacart contributed $30+ million to the Prop 22 campaign — the most expensive ballot measure in California history.
What They Want
Independent contractor classification for gig workers (nationally and in every state), opposition to DOL employee classification rules, opposition to minimum wage requirements for gig workers, reduced state labor enforcement, and favorable antitrust treatment for platform-to-retailer agreements.
What They’ve Gotten
Proposition 22: The gig economy coalition’s $200+ million Prop 22 campaign created a legal framework that classifies app-based workers as independent contractors with minimal benefits (healthcare stipend, accident insurance, earnings floor of 120% of minimum wage — but only for “engaged time,” not waiting time). The California Supreme Court upheld Prop 22 after a lower court struck it down, establishing the legal precedent that gig companies sought.
National Model: Prop 22’s framework has become the model for gig economy lobbying nationwide. Similar legislation has been introduced in multiple states, using the California template to preempt employee classification for app-based workers. The goal: establish a national third category of worker — neither employee nor independent contractor — with fewer protections than either.
Money
The gig economy’s Prop 22 investment — $200+ million from Uber, Lyft, DoorDash, and Instacart combined — created a labor classification framework that saves these companies an estimated $400 million to $1 billion annually in California alone (avoided benefits, payroll taxes, workers’ compensation, and minimum wage obligations). Instacart’s $30 million share of the investment purchases exemption from employee classification that would cost the company $100+ million annually. ROI on Prop 22: approximately 3-10x annually, in perpetuity.
Sources
- OpenSecrets: Gig economy political spending (Tier 1)
- California Secretary of State: Prop 22 campaign finance (Tier 1)
- Ballotpedia: Proposition 22 (Tier 3)
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