Instacart plans to get rid of in-store shoppers. This position differs from the full-service shoppers who do the shopping and deliver to the customer’s door. In-store Shoppers only do the shopping. So far, Instacart plans to lay off 1,877 in-store shoppers. This role is an employee position. The full-service shoppers are contractors.

It is estimated that between March and June of 2021, the in-store shoppers’ position will be eliminated. However, Instacart claims that this is nothing new and that it has been slowly curtailing this service since 2018. They will be further targeting areas including Minneapolis, San Diego, LA, Seattle, and Texas. Currently, they have less than 10,000 in-store shoppers on their platform.

Change In Grocery Industry

Instacart introduced its customer base to in-store shoppers to make grocery runs obsolete. However, retailers have caught on and would rather instead use their employees for orders. During the pandemic, online sales for essentials such as groceries and meals have increased. This growth in demand has allowed food delivery services to grow. At the same time, it has also pushed supermarkets and grocery marts to evolve. This pandemic was a time for grocery stores to reap better margins by becoming more efficient with online commerce. 

Instacart currently has a network of in-store shoppers in 3,300 stores. This network spans 30 states. It is testing a program that will let contract shoppers pick, pack, and handover for pickup. The company announced recently that part of the scaling back involves transferring some of the laid-off workers to different locations where retailers encourage this position. This is in stores where grocers do not have these roles already filled out. The company also said that it would be paying out $250 to $750 in severance pay to laid-off workers in the same announcement. 

Props 22’s Impact On In-Store Shoppers

The amount an employee receives depends on the time an individual has worked for Instacart. Still, the company has received severe backlash for its decision. The UFCW called it a move “to eliminate the jobs of essential workers.” Amid the pandemic, cutbacks such as this will be frowned upon. 

Instacart supported Proposition 22 in the November election. The passing of Prop 22 exempts third-party delivery platforms like Instacart, Uber, DoorDash from a state law (AB5) that requires companies to classify workers as employees, not independent contractors, and provide them with certain benefits.