Food Delivery Workers Will Make A Minimum Wage For The First Time Ever In NYC

Discussions between delivery workers, their unions, the city of New York, and companies like DoorDash and Uber have led to new legislation that will set a minimum wage for delivery workers for the first time. No city in the United States has established a minimum wage for this particular group of workers before now.

The Department of Consumer and Worker Protections initially recommended an hourly minimum wage of $23.82 for app-based delivery workers. This was revised to a somewhat lower rate of $19.96, not including tips, to take into account some delivery drivers working across multiple apps. This decrease was a move New York City Comptroller Brad Lander openly criticized. The minimum wage will start at $17.96 on July 12, 2023, and will increase by $1 per year for two years to reach the goal of $19.96 by 2025. The recommended wages were based on data directly obtained from food delivery applications like DoorDash, GrubHub, Uber Eats, and Relay.

This change comes at a time when wages are being increased across the state. In May 2023, legislation signed by New York Governor Kathy Hochul raised the $15 minimum wage to $16 per hour throughout New York State, and to $17 per hour in New York City.

New York City's Mayor, Eric Adams, expressed his support for the pay rise in a statement. He said, "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."

The essential services provided by delivery drivers were brought into clear focus following the onset of the pandemic, and their lack of protection became painfully obvious. Since then, unions and groups like the Worker's Justice Project and Los Deliveristas Unidos have been on the frontlines advocating for improved working conditions for delivery drivers. They demanded basic rights like pay transparency, set pay schedules, guaranteed use of restaurant bathrooms, and the ability for drivers to choose their delivery area. This advocacy led to the passage of a number of city council bills enhancing worker protections for delivery workers.

This significant minimum wage increase is another major victory. Kazi Fouzia, the director of organizing for Desis Rising Up & Moving (DRUM), a union that supports South Asian and Indo-Caribbean delivery workers, told The Verge, "We welcome this wage increase that many of our members organized for, so that this city begins to properly value the delivery workers' labor, their experiences, and risks." Fouzia added that they intend to hold delivery apps accountable.

As expected, food delivery apps are voicing concerns over government overreach, arguing that the new legislation will impact worker flexibility and lead to increased prices. Josh Gold, a representative for Uber Eats, said, "They are telling apps: eliminate jobs, discourage tipping, force couriers to go faster and accept more trips – that's how you'll pay for this." DoorDash is also considering its options in response to the legislation.

This alarmist reaction is interesting considering the overwhelming financial success of these companies. DoorDash founder and chief executive officer Tony Xu became a billionaire after DoorDash's Initial Public Offering in 2020, a time when delivery workers were coping with the harsh reality of the pandemic. Uber Technologies, the company behind Uber Eats, made a profit of nearly $13 billion dollars over their last fiscal year.

How delivery apps will adapt to the upcoming wage increases remains to be seen. In the meantime, members of groups like Los Deliveristas Unidos are taking a moment to celebrate after more than two years of work. The push to ensure delivery workers know their newly gained rights is the next order of business. Antonio Solis, a vocal member of Los Deliveristas Unidos, affirmed their intentions to The City saying, "We will continue fighting back against the companies who say this will cause more harm than good. The real work begins now."