Gig economy platform Maplebear Inc., which does business as Instacart, filed to go public with the US Securities and Exchange Commission on Aug. 25. Defined by SIA as a “work services platform,” Instacart delivers groceries to customers and relies on its network of “shoppers,” who are primarily independent contractors — something for which the company has been criticized.

Instacart shoppers have earned more than $15 billion as of June 30, 2023, the company said in the filing. About two-thirds are female and about half are parents. They work, on average, nine hours per week, and there are approximately 600,000 of them.

“Shopping with Instacart is differentiated from other flexible alternatives, like rideshare or restaurant delivery, because nearly half of the time is spent in-store and the work can often be done throughout the day,” according to the filing.

Instacart and other gig economy work services platforms have been the subject of lawsuits and legislation for their use of independent contractors for delivery and driving. Instacart cited these legal challenges as business risks in its filing, adding that it believes its shoppers are properly classified.

“We have incurred, and we expect to continue to incur, significant costs and legal fees in defending the status of shoppers as independent contractors,” according to the filing.

As an example, the company cited a misclassification case brought by the city of San Diego which was settled for $46.5 million on Dec. 8, 2022.

In its filing, Instacart also discussed California’s Proposition 22, which voters approved in 2020. The legislation, which aimed to provide more legal certainty over the classification of shoppers as independent contractors, was held up in the courts.

A state judge on Aug. 20, 2021, found Proposition 22 was unconstitutional in a ruling that was later reversed by the appellate court on March 13, 2023. However, Instacart noted uncertainty remains as plaintiffs in the lawsuit have appealed to the California Supreme Court.

Earnings

Instacart had revenue of nearly $1.48 billion in the six months ended in June, a year-over-year increase of 31%. Net income was $22 million compared to a net loss of $74 million in the year-ago period.

The proposed Nasdaq symbol for Instacart is CART.