Delivery worker minimum wage is bringing order to a wild industry
New York City's minimum wage law for delivery workers raised average pay from $11.72 to $19.26 per hour, but reduced hours and tips, creating disparities among full-time and part-time workers.
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New data from New York City's Department of Consumer and Worker Protection indicates that the minimum wage law for delivery workers has significantly improved earnings, with average pay rising from $11.72 to $19.26 per hour after tips, a 64% increase. However, this change has also led to reduced hours for some workers as delivery app companies adjust to the new regulations. While full-time workers report higher paychecks, tips have decreased from $4.30 to $2.30 per hour due to changes in how customers are prompted to tip. The report highlights a shift in the industry towards greater efficiency, with companies like DoorDash and Grubhub implementing stricter scheduling and prioritization systems that favor faster delivery times. This has resulted in fewer hours available for some workers, particularly those who previously relied on the flexibility of gig work. Advocacy groups argue that the changes in tipping and scheduling are retaliatory measures by the apps rather than direct consequences of the minimum wage law. Despite the overall wage increase, many workers express concerns about the new scheduling rules and the decline in tips, which they attribute to increased customer fees. The data suggests that while the minimum wage law has led to higher average earnings, it has also created disparities among workers, with full-time employees benefiting more than part-time or new workers. The need for more detailed data is emphasized to better understand the law's impact on individual workers.
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8 commentsWith that in mind,
> An Uber spokesperson, for example, said the report proves that the law was a "job killer" because there are now 12,000 fewer delivery workers.
My guess is that 10k out of 12k would have quit anyway within a few minths in the old model, and the total amount of orders delivered isn't reduced by that much. I don't view this as a negative.
Many are attacked by dogs while delivering, by customers of their employer. That is a text book examples of job related injury! Also interfering with a post delivery is a federal crime, and violent assault!
But right now workers are gas lighted "you provoked the dog", or it "was your fault". Instead of compensation and paid sick leave, they have to pay hospital bill themselfs and are forced to take unpaid leave for recovery!
Some are even bullied not to report their attacker!
There is also social justice and racial argument! Most delivery workers are low income, while attackers who order deliveries are higher income!
Noted. DoorDash (should we call them DoorStroll now?) should change the tipping feature to be set after the delivery. Or algorithmic determine what is relatively fast and slow delivery and adjust the tip based on the performance of the worker.
Now that their guaranteed income is higher, their variable should be performance based so the best dashers receive the highest total compensation.
I think "educated" is an interesting choice of word, there, given the rest of the article.
This whole "gig economy" should be illegal. Having someone work full time for a company, but not being an employee of any company, seems like a pretty obvious circumvention of labor laws.
The solution should be to force food delivery companies to employ the people doing the deliveries. Of course that will significantly drive up prices, as cost for delivery makes up a substantial part of the total costs. But to be honest food delivery is not something which needs to be as large as it is.
there are now 12,000 fewer delivery workers.
Sounds like a win for some workers. I would like to know the new total of workers though, is 12K fewer a lot? Seems like a lot.
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