Instacart Introduced a New Tip Policy to Protect Workers
Daniel Johnson — June 9, 2020 — Business
References: instacart & techcrunch
Instacart recently updated its tip policy in order to reduce instances of tip-baiting, which is when a customer reduces the tip amount when they receive their delivery. Tip-baiting initially emerged as demand drastically increased on the platform, so customers would increase tips accordingly.
However, Instacart still maintains that tip-baiting is not frequent on the platform, and occurs in under 0.5% of orders on the platform. The new tip policy dictates that any customer who removes a tip following delivery will have to leave feedback explaining their decision. Instacart will also reduce the window tips can be adjusted, and will deactivate accounts that consistently reduce tips following delivery. Previously tips could be adjusted over a period of three days, however, this is now shortened to only 24 hours.
Image Credit: Instacart
However, Instacart still maintains that tip-baiting is not frequent on the platform, and occurs in under 0.5% of orders on the platform. The new tip policy dictates that any customer who removes a tip following delivery will have to leave feedback explaining their decision. Instacart will also reduce the window tips can be adjusted, and will deactivate accounts that consistently reduce tips following delivery. Previously tips could be adjusted over a period of three days, however, this is now shortened to only 24 hours.
Image Credit: Instacart
Trend Themes
1. Reduced Tip-baiting - Opportunity for shopping platforms to implement stricter policies and reduce instances of tip-baiting.
2. Transparency in Tip Adjustments - Opportunity for platforms to require feedback from customers who reduce tips, improving transparency in the tipping process.
3. Shortened Tip Adjustment Window - Opportunity for platforms to reduce the time frame for tip adjustments from three days to 24 hours, discouraging tip-baiting behavior.
Industry Implications
1. Online Retail - Opportunity for online retail platforms to protect workers and improve customer satisfaction by implementing stricter tip policies.
2. Delivery Services - Opportunity for delivery services to address tip-baiting by reducing the window for tip adjustments and taking action against repeat offenders.
3. Gig Economy - Opportunity for gig economy platforms to prioritize fairness and transparency by implementing measures to prevent tip-baiting.
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