NEW YORK — Instacart has challenged New York City’s recently enacted compensation law for app-based grocery delivery workers in court, claiming that the policy exceeds local authority and endangers both workers’ earnings and affordable grocery access for residents.
In a statement issued December 2, the company said the law could “eliminate earnings opportunities for as many as 40% of Instacart shoppers in New York City” and increase grocery delivery costs for families who rely on the service. Instacart argues that the legislation was enacted through “a rushed, flawed, and politicized process” that failed to examine the grocery delivery sector or consult with Instacart, its retail partners, or shoppers.
“What’s more, it violates federal and state law, and it was developed without any meaningful efforts to engage, study, or understand the grocery delivery industry,” the company said.
The company argues that federal law preempts cities from regulating prices, routes, and services for motor carriers transporting goods, and that New York State already regulates worker-pay standards in this sector. Instacart also criticized the city for providing extensive research and phased implementation when regulating restaurant-delivery pay in 2023, while offering no comparable analysis for grocery delivery.
Instacart announced it is also filing a second lawsuit to access records withheld under Freedom of Information Act requests, which the company believes will reveal how the policy was created. “The City is picking winners and losers,” Instacart said, adding that the law could harm local grocers by raising delivery costs and possibly decreasing demand.
Instacart currently partners with nearly 300 retailers to support pickup and delivery from over 1,800 stores across the five boroughs. The company said it upholds fair pay standards but warned the new law could undermine flexible earnings for workers and limit access to nutritious food for New Yorkers who rely on delivery due to health, mobility, or transportation issues.
“We’re deeply invested in the future of this incredible city, and we’re committed to continuing to create opportunities for workers, families and local businesses across all five boroughs.
That’s why we were among the chorus of over 12,000 customers, shoppers, and local leaders who repeatedly warned the City about the harm this law would cause. The City pushed ahead anyway. And when a law threatens to harm shoppers, consumers, and local grocers - and especially when it does so unlawfully — we have a responsibility to act,” the statement read.
The Department of Consumer and Worker Protection has not yet issued a public response to the filing.
