The New York City Department of Consumer and Worker Protection announced that it will implement a minimum wage for food application delivery workers such as Uber Eats and Door Dash and promised an hourly wage of about $20 within the next two years.
With approximately 60,000 food delivery workers in the city, the average wage is about $7.09 per hour, according to the city’s news release.
The nearly 300% wage increase will be implemented over approximately 22 months after the June 11, 2023, announcement, with a drastic increase of over $10 per hour up to $17.96 starting on July 12, 2023. In April 2025, it will jump to at least $19.96 per hour.
With earnings set to adjust annually for inflation, the wages will go above and beyond $20 per hour the following years.
“Apps have the option to pay delivery workers per trip, per hour worked, or develop their own formulas, as long as their workers make the minimum pay rate of $19.96, on average,” the press release stated.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” New York City Mayor Eric Adams said in a statement. “This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.”
However, the food delivery companies have shown some opposition and messaged their employees in April 2023 with concerns that this will limit work flexibility.
“The rules put forth by the DCWP will make working conditions far worse for you. They will severely limit your flexibility. You may not be able to choose when and how you work,” GrubHub said in its message.
DoorDash said that the new decision was “extreme policy” according to CNN and that the company may litigate against the city.
Uber Eats reportedly claimed the city is not “being honest with delivery workers.”
U.S. Senate Majority Leader Charles Schumer, who appeared at the city’s press conference, called food delivery “the American dream” and said the wage increase is “another major victory in our fight to deliver justice for the city’s delivery workers.”
As well, the delivery workers were called “frontline heroes” by New York State Senator Jessica Ramos. “Throughout the darkest days of the pandemic, and today,” she added.
However, the city’s own comptroller, Brad Lander, called the decision “watered down” and said that his office calculated that a $12.69 hourly wage was actually more appropriate.
The city said it will work to convert vacant newsstands into shelters for delivery workers and charging stations for electric bicycles and phones.
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