The grocery delivery startup Instacart has agreed to settle a class action lawsuit for $4.6 million and to make changes to how it explains its fees to customers.
As part of the suit, independent contractors who pick out and deliver groceries for Instacart claimed 18 violations, including improper tip pooling and failure to reimburse workers for business expenses. Instacart still denies all the claims against it.
The settlement is a drop in the bucket for Instacart, which just closed a new $400 million investment that values the startup at around $3 billion. The company has now raised nearly $700 million from venture capital firms and strategic partners like Whole Foods.
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