Today, Instacart took the necessary step of filing a legal challenge to New York City’s new grocery delivery law for app-based delivery workers.

This isn’t an action we take often — or lightly. Our priority has always been to protect affordable grocery access for families and protect vital earnings opportunities for Instacart shoppers. We believe everyone who earns through Instacart deserves fairness, respect, and opportunity.

To be clear, we’re not opposed to a minimum pay standard for grocery delivery workers in New York City — as we’ve said again and again. In fact, we’ve long supported a compensation model that reflects the realities of flexible, app-based work and empowers thousands of New Yorkers to earn supplemental income on their terms. 

The core problem is that this law applies a rigid “utilization” formula that would require platforms to start paying workers the moment they log in and browse the app — even when they’re not actively shopping or delivering. As a result, Instacart would be forced to introduce advanced scheduling and restrict how many shoppers can be online at any time, wiping out the flexibility shoppers consistently tell us they value — and likely replicating the shift limits and lockouts restaurant delivery workers faced under a similar rule.

In total, the law could eliminate earnings opportunities for as many as 40% of Instacart shoppers in New York City — equal to the share of restaurant delivery workers who lost access to work when that similar law took effect in 2023, according to the city’s own data. At the same time, the law is expected to increase grocery delivery costs for hardworking NYC families and could dent demand and sales for local grocers in the city.  

That’s because this law is the product of a rushed, flawed, and politicized process that fundamentally ignored how grocery delivery actually works. 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. 

Why We’re Taking Legal Action

The Law Violates Federal and State Laws

Federal law preempts cities from regulating the prices, routes, and services for motor carriers who transport goods — a category that includes grocery delivery workers. This federal framework exists to ensure consistent, workable standards across the country, preventing the emergence of a confusing patchwork of local rules. In this case, the City’s law runs afoul of that federal statute.

New York State also regulates this area, making the City’s attempt to impose its own pay rules an even clearer case of overreach. Simply put, the City cannot ignore federal and state law to write its own set of rules.

No Transparency, Engagement or Research

Perhaps most concerning is how little the City engaged with the people and businesses this law will directly affect.

When the City previously explored pay standards for restaurant delivery, it spent a year studying the industry and analyzing potential impacts before finalizing legislation. DCWP also delayed enforcing the then-new restaurant-delivery standard through a six-month pause, a 10-month delay of utilization requirements, and a two-year phase-in of minimum payments to provide companies adequate time to adjust and ease cost increases for consumers and local businesses. 

No such effort was made for grocery delivery. There was no meaningful attempt to understand how grocery delivery works, no comparable research, and no effort to work with Instacart, shoppers, or our grocery store partners. Instead, the City jumped to the flawed assumption that restaurant delivery and grocery delivery are the same. They’re not. One is a convenience; the other, an essential service that many — including those facing health, mobility or transportation barriers — depend on to access nutritious food and everyday necessities. Moreover, the work of grocery delivery (picking, packing, and transporting those essentials) is fundamentally different from restaurant delivery work.

Most telling: Not a single person who testified in support of this bill was actually a shopper on the Instacart platform. In seeking transparency about this rushed process, we’ve filed Freedom of Information Law (FOIL) requests, only to be stonewalled. DCWP has even acknowledged that it has records related to our company that it refuses to release. For that reason, we are also filing a second suit to obtain those records from the City. 

Together, these actions by DCWP and the City Council paint a troubling picture: the City is picking winners and losers, favoring some companies while disadvantaging others. New York City should be focused on crafting fair, thoughtful, and lawful policy — not on tilting the playing field and sidestepping legal requirements.

Standing Up for What’s Right

We share many of the same goals as those who supported this law — namely, supporting the city’s workers and expanding food access for NYC families. Instacart has been proud to serve communities across New York City for over a decade. Across the city, we partner with nearly 300 retailers to power pickup and delivery services from approximately 1,800 stores, helping those local businesses grow their reach while expanding food access for New Yorkers who need it most. We’ve also been deeply proud to partner with many New York City nonprofits — from the Food Bank for NYC to the West Side Campaign to End Hunger to the Long Island Cares Food Bank — and work alongside City Council members to combat hunger and improve nutrition security throughout the city. 

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 of customers, shoppers, and local leaders who repeatedly warned the City about the harm this law will 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. 

This legal challenge is about standing up for fairness, for the independence that tens of thousands of New York grocery delivery workers rely on, and for affordable access to groceries for the people who need it most.