Justice Needed for Grocery Delivery Workers: Advocates Call for Fair Treatment and Protection

As the New York City Council deliberates the potential override of Mayor Eric Adams’ veto regarding a grocery delivery pay standard, stakeholders are encouraged to disregard what critics, particularly those from Instacart, identify as spurious arguments. The recent data highlights the positive outcomes stemming from the existing restaurant delivery pay framework, suggesting that similar benefits could extend to grocery delivery workers.

Instacart has raised alarms about the prospect of increased costs for consumers if a pay standard is implemented. However, evidence indicates that those utilizing restaurant delivery services are experiencing no significant rise in app fees or tips since the pay standard was enacted. While it is true that customer tips for delivery personnel have seen a decline, this dip has been balanced by substantial increases in base pay mandated for delivery workers. Currently, app companies are compensating their workers more than double the previous rates per delivery, which rose from .87 to .05. Overall, total earnings per delivery, including tips and company pay, have observed a 17% increase, elevating from .73 to .07.

In another surprising trend, the hourly wages for delivery workers have surged more than threefold, climbing from approximately .60 to .72—a substantial increase of 252%. This comparison reflects data spanning the first quarter of 2025 against the four quarters preceding the introduction of the pay standard. The significant earnings boost is attributed to heightened market pressures on delivery companies to manage worker scheduling more effectively.

New York City’s restaurant delivery worker pay standard serves as a crucial template. For similar legislation aimed at grocery delivery workers to succeed, it is essential for major app companies—such as Instacart, Amazon, Uber, and DoorDash—to prioritize equitable worker compensation over profit maximization. Profits per restaurant order have dwindled by just , resulting in a substantial 17% increase in total worker earnings per order, demonstrating the feasibility of balancing corporate profits with fair worker pay.

The competitive nature of the grocery delivery market among companies like Instacart, Uber, and DoorDash ensures that no single entity risks significant disadvantage from an industry-wide pay standard. Investor confidence remains robust, with a report from Morgan Stanley projecting Instacart’s gross profit margin for 2025 at an impressive 75%. These financial indicators reinforce that the giant delivery services possess both the capability and responsibility to distribute a portion of their success to their workers.

The vetoed legislation, Intro 1135, aims to eliminate the so-called “Instacart Loophole,” which allows third-party delivery apps to offer compensation significantly below the city’s .44 minimum pay threshold that safeguards approximately 70,000 restaurant delivery workers. Unlike employees, independent contractors bear the burden of employer shares for Social Security and Medicare taxes, while lacking vital benefits such as unemployment insurance and paid family leave.

Without the enactment of Intro 1135, grocery delivery workers remain vulnerable to exploitation by companies that prioritize profit margins over fair wages. In addition to overturning the mayor’s veto, the Council should support Intro 1332, which would protect workers from unjust deactivation by delivery platforms, ensuring fair treatment and equitable pay practices.

The future of grocery and restaurant delivery services depends not only on the strategic management of labor but also on the ethical decisions made by these companies regarding worker compensation. Balancing consumer costs, corporate profitability, and equitable worker pay presents a significant challenge that requires legislative intervention and corporate accountability.