Instacart Adds Regulatory Response Fee in NYC

New minimum wage rules for delivery workers lead to higher costs for customers

Feb. 1, 2026 at 4:55pm

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When New York City's new minimum-wage rules for grocery delivery workers kicked in, Instacart immediately added a $5.99 "Regulatory Response Fee" to orders. This is how Instacart is passing along the cost of the city's new law setting a $21.44 hourly wage for app-based grocery delivery workers, who previously earned as little as $5.39 an hour. Delivery companies had warned that higher minimum wages would lead to higher prices and fees for customers.

Why it matters

The new minimum wage law is intended to provide better pay for delivery workers, but it is also resulting in higher costs for consumers through surcharges and fees. This highlights the tradeoffs involved in raising minimum wages, as companies pass along the increased labor costs to customers.

The details

Instacart's new "Regulatory Response Fee" is in addition to a pre-loaded 10% tip on orders. Other delivery companies like DoorDash and Uber Eats have also added similar surcharges tied to a 2023 pay law for restaurant-delivery workers. The minimum wage for delivery workers will also continue to rise automatically each January based on Northeast inflation, meaning the regulatory fees are likely to keep increasing.

  • The new minimum wage rules for grocery delivery workers in New York City went into effect last week.
  • The "Regulatory Response Fee" from Instacart was added immediately after the new rules took effect.
  • The minimum wage for delivery workers is set to jump from $21.44 to $22.13 on April 1, 2026.

The players

Instacart

A grocery delivery company that has added a $5.99 "Regulatory Response Fee" to orders in New York City in response to the new minimum wage rules for delivery workers.

New York City Council

The city government that passed a new law setting a $21.44 hourly minimum wage for app-based grocery delivery workers.

Delivery workers

The approximately 80,000 "deliveristas" in New York City who previously earned as little as $5.39 an hour and will now be paid at least $21.44 per hour.

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What’s next

The minimum wage for delivery workers in New York City is set to increase again on April 1, 2026, from $21.44 to $22.13 per hour, which will likely lead to further increases in Instacart's "Regulatory Response Fee" and other delivery surcharges.

The takeaway

This case demonstrates the tradeoffs involved in raising minimum wages, as companies pass along the increased labor costs to consumers through higher prices and fees. While the goal is to provide better pay for workers, the unintended consequence is that it makes delivery services more expensive for customers.