Is it really a thing? A new study from Instacart claims the company creates jobs, drivers grocers' sales growth and is good for the economy.
A new study paid for by Instacart paints a rosy picture of the firm’s impact on food retailers’ sales and comes as the business model of it and other gig economy companies face ongoing criticism over the classification of workers.
Instacart is driving significant increases in grocery industry employment and sales and having a favorable impact on the economy, according to an Instacart-funded study conducted by an Dr. Robert Kulick with NERA Economic Consulting. The study looked at food retailing operations in four states where Instacart services are provided, concluded the firm has a favorable impact and branded the findings as “The Instacart Effect.”
Whenever a company funds research and said research yields favorable results about the sponsoring company’s impact the validity of the findings must be viewed with some cynicism. And so it is with the Instacart effect, especially given the timing of the research as concerns mount over gig economy companies whose business models are reliant on crowd-sourced labor models that allow for the avoidance of benefits and wages paid by companies with traditional labor models.
For more on the study’s finding and the implications for food retailers visit Progressive Grocer.