New York City on Sunday announced a new minimum pay rate for app-based food-delivery workers, which officials said will impact more than 60,000 gig workers across the city.
Delivery workers for platforms like Uber Eats and DoorDash in the area currently earn about $7.09 per hour on average, according to a news release from the city. The new figure will be $17.96 when it takes effect July 12 and will eventually increase to $19.96 by April 1, 2025. The rate will be adjusted annually for inflation, the officials said.
“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.”
The announcement has been met with strong contention from the gig giants and could likely end up in the courts. Gig-worker pay and status has long been a battle, with the companies that rely on these workers and government officials arguing over the basic business structure.
DoorDash said in a blog post that it’s considering legal action, saying the rule would “threaten earning opportunities for thousands of New Yorkers who are looking for ways to make ends meet” and raise costs.
“Given the City Council’s ill-conceived policy and the broken process that resulted in such an extreme final minimum pay rule, we will continue to explore all paths forward—including litigation—to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on,” the company said.
Uber Eats spokesperson Josh Gold also expressed disappointment with the decision. “The city is lying to delivery workers—they want apps to fund this increase by eliminating jobs and reducing tipping while forcing the remaining workers to deliver orders faster,” Gold said in an email.
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