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October 15, 2016 10:00 pm

Instacart Reverses Course After Backlash From Shoppers Over Plans To Eliminate Tips

Instacart says it is adjusting planned changes to its pay structure for full-service shoppers. The change of heart comes after independent contractors threatened to boycott the grocery delivery startup's plans to replace tips with an optional 10 percent fee collected by the company. From a TechCrunch report: CEO Apoorva Mehta stressed that the decision came from customers looking to continue tipping, rather than complaints from shoppers, which he called a small group that was "very vocal" about the change. However, following removing tips, Instacart received some backlash from shoppers who said they were losing significant portions of their earnings. The backlash went so far as to inspire a boycott among some shoppers, though again Mehta said that this was not the primary cause for returning tipping. [...] Originally, the company sought to raise the overall earnings payout per delivery while removing tips, which was an attempt to make earnings more reliable instead of burst-y as a result of tips. Top shoppers, however, accustomed to getting larger tips because of their performance were concerned that they would lose a significant portion of their earnings. The vocal minority, it seems, was loud enough -- and perhaps so was the customer base -- that Instacart had to reverse course. Update: 10/15 21:25 GMT by M :Title updated to fix a typo. I regret the error.

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