Instacart filed a lawsuit in Manhattan federal court on December 2, 2025 to block five New York City laws that raise minimum pay for app‑based grocery shoppers and impose new tipping and record‑keeping requirements, all of which take effect on January 26, 2025.
The company argues the laws would eliminate earnings opportunities for 40 % of its shoppers, increase delivery costs for consumers, and reduce sales for local grocers. Instacart claims the regulations threaten its flexible‑work model and the asset‑light business that relies on contract workers to keep operating costs low.
Instacart’s lawsuit cites federal preemption under the Fair Labor Standards Act and state minimum wage law, arguing the city overstepped its authority and discriminates against out‑of‑state companies. Instacart attorney Eamon Joyce said the laws are unlawful multiple times over.
Market reaction to the filing saw Maplebear Inc. shares fall 3.7 % to $41.19, reflecting investor concern over potential cost increases and regulatory uncertainty. Instacart’s chief corporate affairs officer Dani Dudeck warned that the laws could raise delivery costs by up to 46 % and cut access to work for thousands of NYC shoppers.
The lawsuit highlights the broader regulatory push against gig‑economy platforms. If the city’s laws are upheld, Instacart’s asset‑light model could face higher labor costs, eroding its high‑margin structure and forcing a shift toward higher‑priced services or reduced workforce flexibility.
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