Not sure why this is being downvoted, as you absolutely are not wrong about this. They are independent contractors who entered into a contract just like a restaurant could contract with a food supplier. They aren't employees in the least as far as the law is concerned.
I'm not defending Instacart, I'm just pointing out legal realities. Many folks in this thread are severely mistaken about employment law. Just because something is morally wrong doesn't mean its illegal. I'm from Washington as well. I know a decent amount about employment law here.