Skip to Content
Politics

Vons and Other Supermarkets Will Soon Start Replacing Their Delivery Drivers With Gig Service Contractors

By Larry Buhl

This article was produced by Capital & Main, which is an award-winning publication that reports from California on economic, political, and social issues. L.A. Taco is co-publishing this article.

[dropcap size=big]I[/dropcap]n the runup to last November’s election, critics of California’s Proposition 22, which rideshare app companies spent an unprecedented $224 million to pass, said that it would encourage even more companies to reclassify employees or fire them in favor of gig workers. Now home delivery drivers who bring food directly to residents during the pandemic are finding these warnings to be prophetic.

Starting in late February, Vons, Pavilions and other Southern California stores owned by Albertsons Companies will begin replacing their delivery drivers with independent contractors using a third-party delivery service. Drivers under the Albertsons Companies umbrella in Northern California are unionized and will not be affected by the layoffs.

Amazon already outsources all of its approximately 75,000 drivers. “Imagine drivers for Fedex or UPS being reclassified,” said a labor spokesman.

In an email, Albertsons spokesperson Melissa Hill said that the decision to discontinue the company’s home delivery fleet in California and other states was “strategic,” and that Albertsons would work to place laid off drivers in other parts of the company.

“While we know that this move will help us create a more efficient operation, it wasn’t a decision we made lightly or without a great deal of consideration,” Hill wrote. “This decision will allow us to compete in the growing home delivery market more effectively.”

Although Albertsons isn’t saying the move was a direct result of Prop. 22, Steve Smith, a spokesperson for the California Labor Federation, said the new law gives cover to them and other companies to reclassify employees and “race to the bottom.”

“Prop. 22 opened the floodgates, and Albertsons layoffs are [an] ominous harbinger of things to come,” Smith told Capital & Main. “Lawmakers must engage on this issue to prevent a flood of job loss.”

Proposition 22, also known as the “App-Based Drivers as Contractors and Labor Policies Initiative,” classified drivers who work with Uber, Lyft, DoorDash and Instacart as independent contractors, essentially giving them a carve-out from the 2019 employment law Assembly Bill 5, which threatened their business model. But Prop. 22’s language doesn’t specify only those companies, but rather all “network companies,” which can include delivery network companies (DNC) or transportation network companies (TNC).

Smith fears that more companies will claim to be DNCs or TNCs to switch from employee drivers, who often enjoy higher wages and job benefits, to contractors, who don’t. “Imagine drivers for Fedex or UPS being reclassified,” he said. One of the largest delivery services, Amazon, already outsources all of its approximately 75,000 drivers.

Northern California drivers for the company unionized in 2019, with the help of United Food and Commercial Workers (UFCW), making it impossible under federal labor law to replace them with contractors. (Disclosure: The union is a financial supporter of this website.)

“We saw the writing on the wall when Prop. 22 was drafted,” said Jim Araby, director of strategic campaigns with UFCW Local 5.

Araby added that during the pandemic, with potentially months of stay-at-home orders in place, many companies may find it tempting to switch to app-based delivery. “Safeway said we need these other companies to meet demand. We said, fine, then increase your number of employees, and they did.”


Copyright 2021 Capital & Main

Editor's note: Knock-LA first reported about this on January 5th. Find their story here.  

Stay in touch

Sign up for our free newsletter

More from L.A. TACO

Daily Memo: While ICE Lays Low, They’re Still Active While Building Up Its Fleet, Offices, and Detention Centers

ICE activity still continues at a slower pace, but it has not disappeared. This past weekend was a rare, quiet one. What we’re seeing is that ICE is laying low, sticking to courthouses, jails, and check-ins, especially from their special ISAP unit.

ICE Rams Vehicle and Hospitalizes the Same U.S. Citizen Again in Ventura County

"I expect this kind of lawlessness from ICE, I don’t expect the hospitals to be complicit in that lawlessness and detain people," says Thomas Harvey, one of Leonardo Martinez's lawyers, after the hospital refused to remove his handcuffs.

One of the Best San Fernando Valley Coffee Shops Owes Its Success to Argentine Culture

Mate has been enjoyed in the region for centuries, originally by the Indigenous Guaraní people and eventually spread by Jesuit missionaries. In time, the drink became a symbol of unity and togetherness since it is a common pastime in Argentina.

March 10, 2026

The Best Signs That Turned Tired Legs into Smiles at the 41st L.A. Marathon

Despite those who found street closures a nuisance, the overall consensus was that this city shows up for its people. In a time when community is most needed, supporters showed up with a level of commitment L.A. could use more of these days.

March 9, 2026

Iranian National Dies in Mississippi, Marking 17th ICE-Related Death Since December 31

Fifty-nine-year-old Pejman Karshenas Najafabadi is currently the 11th person to have died while in ICE custody this year that we know of, and the 17th ICE-related death since the killing of Keith Porter on December 31, 2025.

March 9, 2026

Trump’s ‘Deportation Judges’ Take Over Has Begun: Half of L.A. Immigrants Now Miss Court and Get Deported Sight Unseen

The Trump administration fired a quarter of the nation's immigration judges and the Pentagon authorized 600 military lawyers to replace them. They’re recruiting for "deportation judges" on social media. Fewer than 3 in 100 of the people asking for asylum get to stay.

March 9, 2026
See all posts