Yes, this is common in the restaurant industry. But a few differences:
(1) Tips are expected in the restaurant industry
(2) Waitstaff knows what they're signing up for
(3) The restaurant does not adjust wages after tips have been received
(1) Tips are expected in the restaurant industry
(2) Waitstaff knows what they're signing up for
(3) The restaurant does not adjust wages after tips have been received
In many cases they do. If you receive zero tips for a shift, they are obligated to pay out minimum wage. If you receive $200 in tips for a shift, they pay out a lower figure, usually around $2.
The people delivering here are "contractors", not employees, so this doesn't actually apply to them; what Instacart is doing here is merely reprehensible, as opposed to illegal.