New York City shoppers opening their Instacart apps this week were met with an unwelcome surprise at checkout — a brand-new charge quietly added to their grocery bills just days after sweeping delivery worker rules went live.
According to the New York Post, the grocery delivery platform has begun applying what it calls a “regulatory response fee” to orders placed within the five boroughs, a cost that did not appear on customer receipts before Monday.
By Tuesday, the fee — listed at $5.99 — was showing up on orders both small and large, including purchases totaling as little as $35 and as much as $184.
The change coincided with the rollout of new city laws governing grocery and food delivery platforms. Instacart’s website now acknowledges the added charge, noting in its FAQ section that “NYC regulatory response fees appear in the order summary.”
The company says the fee “helps cover increased operating costs in NYC due to government regulations on delivery platforms.”
Archived versions of the site from just weeks ago make no mention of such a charge.
Instacart confirmed the timing of the fee in a statement and squarely blamed City Hall.
“For months, we raised clear, data-backed concerns that the policy would increase grocery delivery costs for New Yorkers, but those warnings were repeatedly ignored,” the company said, calling the City Council’s actions “misguided and burdensome grocery delivery laws.”
City officials are now looking into the matter. A spokesperson for the Department of Consumer and Worker Protection said the agency is investigating the newly imposed charge.
The move comes as Instacart is already facing scrutiny in New York. A recent study alleged the company used an opaque pricing algorithm that charged different customers different prices for identical items — without disclosure.
The new city rules expand worker protections for grocery delivery drivers, including higher guaranteed pay. Under the law that took effect Monday, drivers working for platforms like Instacart must earn at least $21.44 per hour, excluding tips, with automatic annual increases.
Separately, New York City now requires food delivery apps such as Uber Eats and DoorDash to present a tipping option before checkout, with a default gratuity of at least 10% of the order total.
City officials, including the Mamdani administration, have argued the measures are necessary to stabilize workers’ income after tips fell sharply following earlier wage changes in late 2023.
Officials previously accused DoorDash and Uber Eats of blocking more than $550 million in potential tips by pushing gratuities to after checkout.
Those companies fought the legislation in court, claiming it violated their free speech rights and would further drive up delivery costs amid “tipping fatigue” and rising prices. A federal judge rejected that argument last week.
Shortly after the ruling, Instacart’s new fee appeared — and New Yorkers began paying more at checkout.
