Uber, DoorDash and Grubhub are not pleased with the outcome, which they call "extreme" — while some worker advocates say the city fell short.
Starting next month, tens of thousands of New York City restaurant delivery workers will finally see a new minimum pay rate — a wage floor two years in the making, and the first of its kind in the nation.
Under regulations announced Sunday and published by the city Monday, delivery workers for DoorDash DASH , Uber UBER , Grubhub and other app platforms will make at least $17.96 an hour without tips by July 12, and at least $19.96 an hour by 2025. “This is something huge for us,” Gustavo Ajche, the leader of the workers group Los Deliveristas Unidos, said in an interview with MarketWatch on Monday. Los Deliveristas Unidos has campaigned for the area’s delivery workers for years, and secured a broad set of protections in 2021 — including a minimum wage that was supposed to take effect earlier this year.
But other city officials, including Comptroller Brad Lander, were critical of the outcome because the minimum-pay figures are less than the $23.82 an hour proposed by the city’s Department of Consumer and Worker Protection late last year, and the pay raise was overdue. That figure would have included a $19.86 base rate, $1.70 to compensate for the absence of workers’ compensation insurance and $2.26 to reflect the delivery workers’ expenses, according to the DCWP.
“Today’s deeply misguided decision by the DCWP ignores the unintended consequences it will cause and sadly will undermine the very delivery workers it seeks to support,” Eli Scheinholtz, a DoorDash spokesperson who called the final rule “extreme,” said Monday. “We will continue to explore all paths forward — including litigation — to ensure we continue to best support Dashers.”
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