In the wake of New York City’s recent minimum wage increase to $17.96, a surprising twist has emerged for food delivery workers. Companies like Uber Eats, DoorDash, and Grubhub are reportedly adjusting their business models, which has inadvertently impacted the earnings of their delivery personnel.
Despite an initial increase in hourly wages, a significant drop in tips, which previously constituted up to half of the delivery workers’ income, has offset these gains. Pay stubs indicate that tips have plummeted to a mere 5–15% of total earnings. Before the wage hike, delivery workers earned an average of $11.12 with tips and $4.03 without.
In response to the new wage ordinance, Uber is introducing a scheduling system to limit daily couriers, prioritizing those with the most rides in the past 28 days. Additionally, a $2 charge is being implemented on all delivery orders to manage increased labor costs. DoorDash is also expected to raise its prices in the coming months.
The new wage structure pays $29.93 per hour for trip completion but does not cover idle time, which can account for a significant portion of a shift. While these changes are legally compliant, they raise concerns about the real earnings of delivery workers in NYC’s dynamic economic landscape.
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