Democratic Mayor Eric Adams of New York City announced Sunday that the city will introduce a new minimum wage for Uber Eats and DoorDash delivery drivers, according to a press release.
Delivery apps like Uber Eats, DoorDash and Grubhub will have to pay more than $19.96 an hour to over 60,000 delivery workers in New York City., According to reports release From Adams’ office.The average wage for delivery drivers used to be $7.09 an hour (Related article: Democratic senator shuns Bernie Sanders’ $17 minimum wage hike)
A new minimum wage rate of $17.96 went into effect Monday and is expected to rise to $19.96 an hour by April 1, 2025. From 2025 onwards, the rate will adjust based on inflation, according to a press release.
According to the New York City Department of Consumer and Worker Protection (DCWP), “Workers are spending about 60% of their time traveling and 40% ‘on call’, and the new rates will make deliveries more aggressive. Workers will be paid regardless of whether they are employed or not. According to a press release.
The app-based delivery service side has pushed back on the decision, with an Uber Eats representative saying, “The city is lying to the delivery guys. They’re telling the app to work less and tip less, leaving the rest of the workers to order.” We would like you to fund this increase by having it delivered sooner.” ,” according to Associated Press.
New York became the first city in the country to impose a minimum wage for app delivery workers.
The average hourly wage for 60,000 food delivery workers in New York City is currently about $7, but will officially rise to $17.96 on July 12.
— More Perfect Union (@MorePerfectUS) June 12, 2023
and statement“To meet the new demand of such extreme minimum wages, platforms like ours will have to either increase their cost per order or reduce their service in New York City,” DoorDash said. rice field.
“Given the inadequate policies of the City Council and the broken process that resulted in such extreme final minimum wage rules, we will continue to fully support the Dashers and ensure that their flexibility is preserved. We will continue to explore all possible avenues, including litigation, in order to do so.” Many delivery workers are relying on them. ”
The minimum wage hike comes at a time when millions of people across the country are calling for a minimum wage hike, with 23 states slated to do so by early 2023. New York City’s starting hourly wage of $17.96 for drivers remains the highest of any state that has raised. For minimum wages, Washington and California are closely followed at $15.74 and $15.50 an hour, respectively.
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