As aggregators, consumers, gig drivers and restaurants alike struggle to make the economics of on-demand food delivery work out in their favor, New York City is throwing its weight behind drivers.
Per an announcement from NYC Mayor Eric Adams and from New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga on Sunday (June 11), the city will raise the minimum hourly wage for “app-based restaurant delivery workers” to $17.96 beginning July 12 and raise it again to $19.96 on April 1, 2025. According to the mayor’s office, these workers currently average $7.09 an hour in the city.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” Adams said in a statement. “This new minimum pay rate, up by almost $13/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.”
Read more: FTC Commissioner Bedoya Says Gig Workers Can Organize Without Fearing Antitrust
Unsurprisingly, restaurant aggregators are not happy with the decision. Take, for instance, DoorDash, the United States’ leading restaurant delivery app.
“The sad truth is that both the City Council and DCWP have chosen to ignore the unintended consequences this policy will cause, and how it will undermine the very delivery workers it seeks to support,” the aggregator stated in a blog post. “As we repeatedly made clear, to meet these new demands of such an extreme minimum pay rate, platforms like ours will have to increase costs on each order or reduce services in New York City.”
The move comes amid frequent ongoing dissatisfaction on all parties’ parts with the economics of third-party restaurant delivery, even as consumers continue to demand convenience and as many restaurants continue to be unable to afford to build out their own delivery networks.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI