New York City Sets Minimum Wage For Food Delivery Drivers

It looks like the delivery app industry is getting a much-needed shake-up as New York City is setting a new minimum pay rate for food couriers. According to CNN, the pay rate increase comes in response to complaints from underpaid drivers for popular apps like UberEATS and DoorDash. We recently broke the news of DoorDash establishing a minimum wage option for their couriers (including tips), and it now appears all delivery services that operate in the Big Apple will have to follow suit. 

Manhattan has over 60,000 food delivery workers that currently make $7.09 an hour on average. According to a news release from the city, workers’ hourly wages will increase to $17.96 an hour on July 12, then again to $19.96 in April 2025 — adjusted annually for inflation. While the pay bump is long overdue, delivery apps will still be granted some flexibility in terms of how they pay delivery workers the new minimum rate. This means that apps may choose to pay per trip, hourly, or through a custom model. 

New York City Mayor Eric Adams shared in a statement, “Our delivery workers have consistently delivered for us — now, we are delivering for them. This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their familiars can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.”

Furthermore, workers will be paid at least $0.30 cents each minute while waiting for a trip to start. If the app only pays after a delivery is accepted, it will have to pay workers $0.50 a minute. Tips will be added on top.

Ligia Guallpa, executive director of the Worker’s Justice Project, which is a group that advocates for delivery workers in New York City, said in a statement, “While there’s still work to do, a minimum pay rate for food delivery workers will transform the lives of thousands of families across the city and deliver long overdue justice for deliveristas.” 

Despite DoorDash’s updated payment system, a statement was released saying that it’s considering pushing back with litigation, calling it an “extreme policy.” 

“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,” a spokesperson said. “Given 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.”

UberEATS, who also owns Postmates, has pushed back as well, saying that the city’s new mandate is misleading. Josh Gold, a spokesperson for the company says, “They are telling apps: eliminate jobs, discourage tipping, force couriers to go faster and accept more trips — that’s how you’ll pay for this.”

New York faced challenges with the influx of online ordering during the pandemic. Without a suitable infrastructure, lawmakers were forced to add new bike lanes, and rules around bathroom access, along with an ongoing campaign to combat the risk of lithium-ion fires in electric bikes and scooters. 

Despite pushback from UberEATS and DoorDash, delivery drivers can now sleep more comfortably knowing what exactly they’ll make if they work for a certain number of hours.