In response to an increase in the use of services like Uber Eats and DoorDash since the outbreak, New York City on Sunday set a new minimum pay rate for app food delivery employees.
According to a news release from the city, the 60,000 people who transport meals in Manhattan presently make an average of roughly $7.09 per hour. However, with the new pay rate, they will eventually be able to make at least $19.96 per hour. On July 12, the compensation will climb to $17.96 per hour, and on April 12, 2025, it will rise once more to almost $20 per hour.
New Minimum Fee
The city also stated that pay would be adjusted annually for inflation. According to the city, delivery apps will be able to choose how to pay delivery staff the new minimum fee. Apps can opt to pay users per trip, per hour worked or using their own formula as long as they earn the minimum wage.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” stated New York City Mayor Eric Adams in a statement. “This new minimum wage rate, up by nearly $13.00/hour, will ensure that these workers and their families can make a living, have greater access to economic stability, and contribute to the continued success of our city’s storied restaurant industry.”
Once the amendments take effect in 2023, apps that compensate workers for the time they wait for a trip and their journey time must pay at least $0.30 per minute. According to the press release, apps that only pay when a driver accepts a delivery route will have to pay at least $0.50 per minute. Tips are not included in the prices.
New York City food app delivery workers to receive $18 minimum wage bump
Long-overdue justice for deliveries
Although there is still work to be done, Ligia Guallpa, executive director of the Worker’s Justice Project, stated in a statement that establishing a minimum wage for food delivery workers will “transform the lives of thousands of families throughout the city and deliver long-overdue justice for deliveries.” The organization strives to represent delivery drivers in the New York City.
DoorDash, which is not against a minimum wage for delivery employees, stated in a statement on Sunday that it is exploring a lawsuit to fight the city’s “extreme policy,” claiming that it exceeds the norms other industries are required to uphold.
A firm representative said, “Today’s deeply misguided decision by the DCWP ignores the unintended consequences it will cause and regrettably will undermine the very delivery workers it seeks to support.” Given the flawed procedure that led to the final minimum pay rule’s extremeness, “we will continue to explore all options going forward, including litigation, to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on.”
In a statement released on Sunday, Uber Eats said that the city is not “being honest with delivery workers”. Postmates is also owned by Uber.
The City struggled to handle the rise of online orders
They are instructing applications to cut jobs, discourage tips, make couriers travel faster, and accept more trips as a means of funding. Josh Gold, a representative for Uber Eats said in a statement. Delivery orders spiked during the pandemic. In 2019, delivery accounted for about 7% of total US restaurant sales, according to Euromonitor International. After a spike in 2020, it settled at nearly 9% in 2021, still higher than pre-Covid levels.
New York City struggled to handle the rise of online ordering and manage the tens of thousands of workers who make it happen. The lack of infrastructure for food delivery created problems for workers, pedestrians, and residents, leading lawmakers to encourage more bike lanes, new rules around bathroom access, and an ongoing campaign to combat the risk of lithium-ion fires in electric bikes and scooters, CNN reported.