Instacart issued its long-expected initial public offering of stock on Tuesday, priced at $30 a share for a valuation of $10 billion, well below the $39 billion it was valued at after a fundraising round in early 2021, but at an offering price low enough to entice retail investors to join the party. The company has been profitable since Q2 2022 despite falling revenue, thanks to various trimming.
Last month, the Department of Labor proposed a change to the way it determines the classification of independent contractors. If it eventually becomes law, the rule change would have a lasting effect on the gig economy and gig workers. Kashyap Deorah, CEO of HyperTrack, talks about the balancing act in front of the DOL.
Instacart and the attorney’s office for the city of San Diego have reached a settlement over charges it misclassified its delivery drivers as contractors, a heated and ongoing issue in California and elsewhere that challenges the economics of last-mile delivery companies using the pervasive gig model.
After the U.S. Supreme Court last week refused to hear a case that would have reopened the issue of using independent contractors in California, shippers are bracing for the supply chain impact as a nagging truck driver shortage becomes even more acute.
The U.S. Supreme Court, in an end-of-term note, on Wednesday declined to hear a California appellate case that leaves in place AB5, a 2020 state law that calls for so-called gig workers to be reclassified as employees, causing a seismic shift in the state’s transportation sector, among others.
This peak holiday season will be unlike any before, and brands must adapt accordingly. These unusual circumstances need to be met with creative solutions. Here are a few ways to avoid this scenario by looking at alternative last-mile delivery options that will keep both consumers and brands happy.