New York City’s controversial push to raise wages for app-based grocery delivery workers faces legal threats from industry giants and mounting concerns from small businesses. If Mayor Eric Adams signs off on the measure, Instacart has promised a lawsuit, warning of dire consequences for workers and consumers alike.
The proposal, approved by the Democrat-controlled City Council in July, mandates a minimum hourly wage of $21.44 for grocery delivery workers and expands their labor protections. Advocates argue it ensures fair pay in a booming but historically underpaid sector. Speaker Adrienne Adams hailed the measure as a step toward “safety, health, and dignity” for workers.
Opponents warn of sharp economic fallout. Instacart’s Chief Corporate Affairs Officer Dani Dudeck sent a letter to Mayor Adams claiming the bill would destroy jobs and spike grocery prices. “If bill 1135-A becomes law, thousands of New Yorkers will lose their ability to do delivery work,” Dudeck wrote. She argued that rising costs would limit service access for residents dependent on home deliveries for essentials.
The National Supermarket Association echoed the warning, calling the bill a potential death blow to independent grocers. “New York’s Independent grocers are already facing historic challenges,” the group said, pointing to inflation, rent hikes, and rampant retail theft. Without the deep pockets of national chains, small stores may not survive new wage mandates.
Instacart is backing its opposition with a TV and digital ad campaign claiming reduced job opportunities and service cuts, particularly for elderly and disabled customers.
As Mayor Adams weighs the bill, political pressure intensifies. His decision could impact the city’s mayoral race, where democratic socialist Zohran Mamdani has proposed government-run grocery stores — a plan critics mock as “Soviet bread lines.”
Adams has not indicated whether he will sign or veto the bill.
