ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

New York City Sets Minimum Wage for Food Delivery App Workers; This Is The New Pay-Rate

Currently earning an average of $7.09 per hour, these workers will now have the opportunity to earn at least $19.96 per hour.
PUBLISHED JUN 20, 2023
Cover Image Source: Pexels | Kindel Media
Cover Image Source: Pexels | Kindel Media

New York City has announced a significant increase in the minimum pay rate for app food delivery workers. As the popularity of services like Uber Eats and DoorDash skyrocketed during the pandemic, the city aims to ensure fair compensation for the approximately 60,000 food delivery workers in Manhattan.

Currently, earning an average of $7.09 per hour, these workers will now have the opportunity to earn at least $19.96 per hour, significantly improving their financial well-being, according to CNN Business. The pay raise will be implemented in two stages: starting with $17.96 per hour on July 12, 2023, and reaching nearly $20 per hour by April 2025.

The demand for food delivery services surged during the pandemic. Online food ordering has become an integral part of the restaurant industry. Euromonitor International reported that in 2019, delivery accounted for approximately 7% of total restaurant sales in the United States. After a notable increase in 2020, the share settled at nearly 9% in 2021, exceeding pre-Covid levels.

This trend has posed challenges for New York City, requiring the development of infrastructure to accommodate the growing number of delivery workers. Issues such as limited parking spaces during rain and lack of restroom access have necessitated additional regulations and initiatives to support delivery workers.

Image Source: istockphoto/Tero Vesalainen
Image Source: istockphoto/Tero Vesalainen

New York City Mayor Eric Adams expressed gratitude for the hard work of delivery workers and highlighted the importance of supporting them. He stated, "Our delivery workers have consistently delivered for us — now, we are delivering for them."

By increasing their minimum pay rate by nearly $13 per hour, the city aims to provide economic stability for these workers and their families, while also contributing to the thriving restaurant industry in New York City.

Image Source: Pexels/MART PRODUCTION
Image Source: Pexels/MART PRODUCTION

The city's new pay rate allows delivery apps to choose how they compensate their workers, as long as they meet the minimum amount. Apps can opt to pay per trip, per hour worked, or by devising their own payment formula. This flexibility recognizes the diverse needs and preferences of delivery workers. The new pay rate will also be adjusted annually for inflation, ensuring that workers are not adversely affected by rising costs of living.

Image Source: Pexels/Norma Mortenson
Image Source: Pexels/Norma Mortenson

While the city's decision has been applauded by worker advocacy groups, delivery apps have raised concerns about the potential impact on their operations. DoorDash expressed its disagreement with what it described as the city's "extreme policy" and suggested that it might pursue legal action. The company, however, did not oppose the concept of a minimum wage for delivery workers. Similarly, Uber Eats accused officials of pushing for practices that may result in job cuts, reduced tipping, and increased pressure on couriers. It remains to be seen how these concerns will be addressed in future discussions.

Image Source: Pexels/RDNE Stock project
Image Source: Pexels/RDNE Stock project

Recognizing the need for better treatment and fair compensation, the New York City government passed Local Law 115 in 2021. This legislation mandated the Department of Consumer and Worker Protection to conduct a study on delivery worker pay and treatment. As part of ongoing efforts, the Adams administration is collaborating with Los Deliveristas Unidos, an organization advocating for delivery workers, to repurpose vacant newsstands into shelters for workers. Additionally, plans are underway to provide charging stations for electric bicycles and phones, catering to the specific needs of delivery workers.

Image Source: Pexels | Kampus Production
Image Source: Pexels | Kampus Production

Creating a More Equitable Delivery Industry

New York City's decision to increase the minimum pay rate for app food delivery workers represents a significant step toward creating a more equitable and fair industry. By ensuring that these workers earn a living wage, the city is supporting their economic well-being and recognizing their essential contributions to the local economy. However, striking a balance between worker protection and the operational needs of delivery apps will require ongoing dialogue and cooperation between all stakeholders involved.

Image Source: Pexels/Polina Tankilevitch
Image Source: Pexels/Polina Tankilevitch
MORE ON MARKET REALIST
The guest got incredibly lucky to find a Benny Andrews painting while looking at junk.
1 hour ago
The guest was shocked to learn that someone would pay $20,000 for Queen Victoria's undergarments.
21 hours ago
The guest's family heirloom turned out to be exactly as valuable as he thought.
22 hours ago
The guest who assumed it was an ancient Chinese artifact said it felt like 'a stab to the heart'
1 day ago
While all the sharks burned calories, most were unwilling to burn their money.
2 days ago
In an interview with CNET's Patrick Colin, Harrison showed off his vintage tech items.
2 days ago
The item, which didn't seem too useful as a cup, turned out to be a significant piece of history.
2 days ago
The player had everyone on the edge of their seats as time was running out.
2 days ago
The member complained that the store had half-eaten boxes of food on the shelves for customers.
2 days ago
The owner of Michael Jordan's three rookie cards from 1986 to 1987, who got them for $12, was hoping to get $1,000 for the set.
2 days ago
The ring with a rare Kashmir Sapphire turned out to be worth a lot more than the guest anticipated.
3 days ago
The host once again got candid to open up about one of his greatest fears.
3 days ago
The guest's $1,500 investment went up by nearly 10 times in value.
3 days ago
The expert appraised all designs based on which celebrity wore them and when.
4 days ago
After winning a new home gym, the contestant went all out with his celebration.
4 days ago
When Harrison came across the 'uber cool' Hollywood prop, he knew he had to buy it.
5 days ago
Seacrest kept teasing the player and the fans about finally crowining a million dollar winner.
5 days ago
While the seller came in with a huge asking price, there was one big problem with the collection.
5 days ago
The appraisal turned out to be 10 times the price that the guest had paid for it.
5 days ago
The dress from the Oscar-winning film, "Some Like It Hot," got a six-figure appraisal on the show.
5 days ago