"New York City Grocery Delivery Customers Hit with Surprise Fee Amidst Regulatory Battle"
In a move aimed at protecting gig economy workers, New York City has implemented new regulations requiring grocery delivery apps to pay their employees at least $21.44 an hour. As part of this change, customers of Instacart are now being charged a "regulatory response fee" – amounting to $5.99 on the latest order checked out by Gothamist.
Industry experts say this move is just another example of "drip pricing," where companies pass on increased costs to consumers through seemingly small charges that are often tucked into the final bill. According to Vicki Morwitz, a professor at Columbia Business School, these back-end fees can lead customers to make more impulse purchases and ultimately end up paying more for their groceries.
While delivery apps argue that such regulations drive up costs for consumers and hurt small businesses, city leaders claim that the changes are necessary to address low pay and unpredictable earnings among gig economy workers. Critics point out that similar charges have already been introduced by other companies, such as DoorDash's $1.99 "NYC Regulatory Response Fee."
Instacart has pushed back against the regulations, stating that they were implemented without adequate consideration for how grocery delivery actually works. The company claims that the new rules will limit the number of workers on the road at any time.
As policymakers continue to scrutinize pricing structures that hide costs from consumers, regulators are now taking a closer look at Instacart's new fee. With the Biden administration supporting increased transparency around fees and charges, it remains to be seen how this move will play out in New York City.
In a move aimed at protecting gig economy workers, New York City has implemented new regulations requiring grocery delivery apps to pay their employees at least $21.44 an hour. As part of this change, customers of Instacart are now being charged a "regulatory response fee" – amounting to $5.99 on the latest order checked out by Gothamist.
Industry experts say this move is just another example of "drip pricing," where companies pass on increased costs to consumers through seemingly small charges that are often tucked into the final bill. According to Vicki Morwitz, a professor at Columbia Business School, these back-end fees can lead customers to make more impulse purchases and ultimately end up paying more for their groceries.
While delivery apps argue that such regulations drive up costs for consumers and hurt small businesses, city leaders claim that the changes are necessary to address low pay and unpredictable earnings among gig economy workers. Critics point out that similar charges have already been introduced by other companies, such as DoorDash's $1.99 "NYC Regulatory Response Fee."
Instacart has pushed back against the regulations, stating that they were implemented without adequate consideration for how grocery delivery actually works. The company claims that the new rules will limit the number of workers on the road at any time.
As policymakers continue to scrutinize pricing structures that hide costs from consumers, regulators are now taking a closer look at Instacart's new fee. With the Biden administration supporting increased transparency around fees and charges, it remains to be seen how this move will play out in New York City.
The whole "regulatory response fee" thing just sounds like a fancy way of saying "we're going to nickel and dime you until the cows come home." And don't even get me started on the delivery apps, always playing the victim. I mean, can't they see what's really going on here? 
... I mean, have you ever tried making a good margherita from scratch? It's actually not that hard! The key is using fresh tomatoes and mozzarella cheese... oh wait, what were we talking about again? 
So yeah, grocery delivery fees are crazy now. I swear, every time I order online, there's some extra charge or fee that I'm not aware of until it's too late. Like, what even is the point of a regulatory response fee? 
I mean what other sneaky fees are they gonna slap on us next? 
gotta stay vigilant, you know? 
. $21.44 an hour is one thing, but now they're charging us an extra 5 bucks just to cover their regulatory bills? it's just not right 
. and don't even get me started on the whole drip pricing thing... i swear, companies are like "oh look, we're being all transparent and stuff" 
.
...
. It feels like they're just nickel and diming us. And what's with all these fees? First it's $5.99, then where does it stop? 
. First it was a price hike on delivery fees, now its gonna be some hidden fee that adds up to 5 bucks more to my Instacart order? It feels like every time you try to save money on groceries, the company finds new ways to charge you more 
. And what really grinds my gears is that these companies are saying it's all about protecting gig economy workers, but is it just a way to mask their own greed