New York City food delivery drivers are on track to see a $9 increase in hourly rates by 2025. The city’s Department of Consumer and Worker Protection proposed a pay rate that considers food delivery drivers’ operating costs and time spent waiting for a food delivery offer.
Local law in 2021 required a study be conducted on worker pay and conditions to establish a minimum wage for all food app-based drivers. The city estimates that 60,000 food delivery drivers currently earn about $11 an hour including tips and expenses. The proposed pay minimum of $17.87 would start on January 1, 2023, and on April 1, 2025, the full rate of $23.82 will be implemented.
Food Delivery app companies are expected to challenge this proposal in court. DoorDash, GrubHub, and Uber Eats sued New York City last year over a law that capped the commission fees that food delivery apps can charge restaurants. DoorDash, GrubHub, Uber Eats, and Relay comprise 99% of all NYC food app deliveries.
A public hearing for this minimum wage proposal will be held on December 16th.