Instacart Reclassifies Part of Its Workforce Amid Regulatory Pressure on Uber

Instacart, the online grocery delivery service and one of the rising stars of Silicon Valley's on-demand economy, is converting a large part of its contractor workforce into part-time employees. Instacart says it will make the change starting June 22 for staff members in Boston and Chicago, with more cities coming later. The shift comes amid an increasing debate over how technology companies such as Uber, Lyft, and the delivery service Postmates designate American workers who make a living using their services.

Instacart has about 10,000 shoppers in 16 cities across the U.S., roaming the aisles of retail chains such as Whole Foods Market, Costco Wholesale, and Petco, and selecting the fruit, vegetables, and other items that customers order via smartphone apps and the San Francisco startup's website. Like drivers for Uber or messengers for Postmates, those workers have, until now, been contractors, with none of the security or benefits of full employment.