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(Instacart Photo)
Instacart is joining Uber in an attempt to block a new ordinance in Seattle that regulates how companies can deactivate workers who deliver food, shop for groceries, and complete other tasks via on-demand apps.
Uber last week filed a complaint in U.S. District Court in Seattle, seeking an injunction blocking the new rules that go into effect in January.
Instacart filed its own complaint on Tuesday to participate in litigation alongside Uber.
The law, originally passed by the Seattle City Council in August 2023 and signed at the time by Mayor Bruce Harrell, was designed to provide more job security to app-based couriers, delivery drivers, and other service providers.
But Instacart said that the ordinance infringes on constitutional rights and federal laws. The grocery giant alleges that the ordinance contradicts its views on safety and efficiency, and poses risk to customer safety and worker privacy given data disclosure requirements.
The legislation was the first of its kind at the time, and goes further than efforts by other municipalities to regulate deactivations.
Under the law, companies must give workers a 14-day notice of deactivation, base deactivations on “reasonable” policies, ensure human review of all deactivations, and provide workers with records behind the decision.
The law does not apply to drivers who transport passengers, who are covered under Washington state law.
The ordinance was supported by gig worker advocacy groups, who say that it will help to protect workers from being unfairly deactivated. They said companies had too much power to deactivate workers, leading to workers being unfairly punished for things like rejecting too many orders or being unavailable during certain times.
The suit reflects broader debates over gig worker protections, corporate autonomy, and the role of local governments in regulating tech-driven labor markets.
In a statement sent to GeekWire following Uber’s lawsuit last week, Callie Craighead, a spokesperson for Mayor Harrell’s office, said: “Seattle is committed to remaining at the forefront of the strong worker protections needed for today’s modern gig economy. While we are unable to comment on the merits of pending litigation, the City will vigorously defend its laws from legal challenge.”
Instacart, Uber, and DoorDash were embroiled in a battle with Seattle lawmakers over a new minimum wage law for food delivery drivers earlier this year.
Instacart previously sued the City of Seattle in 2020 over a law requiring premium pay to drivers during the pandemic.
The company, which reported revenue of $852 million in the third quarter, up 12% year-over-year, paid $730,000 to the City of Seattle earlier this year to settle alleged violations of a gig worker sick time law.
Instacart stock is up more than 80% over the past year.
Instacart joins Uber in lawsuit against Seattle over driver deactivation law by GeekWire on Scribd
