![]() Apps like DoorDash have cried foul warning of potentially disastrous cost increases for themselves and consumers AP I already know the pain,” said Nick Vroom, a Manhattan sales associate, who called the new idea “infuriating” and said he would probably start picking up his own food.Įxperts warned the hikes could have cascading effects that would ripple across the restaurant industry. “I’m already paying like $12 in DoorDash fees per visit for something that costs $15. In a 40-hour week, the pay hike could see app delivery workers making nearly $70,000 - considerably more than a first-year NYPD officer’s $42,500. Delivery app workers could see a big payday if new city rules are adopted Michael McWeeney “The extreme pay rate, $33.27 per hour for platforms selecting the trip time pay option, will result in unsustainable new costs for New York City consumers and hundreds of millions in lost revenue for local restaurants and businesses,” Sascha Owen, a DoorDash executive said at a hearing on the subject earlier this month. The proposed wage hike - derived using a complex formula - is significantly higher than a $23.82-per-hour plan the agency floated in November.Ī city-commissioned study said the earlier proposed rate would increase consumers’ cost of delivery by $5.18 per order, on average, as the apps pass the increased costs onto consumers. The hikes would go into full effect in 2025.Ī law passed by the City Council in 2021 mandates food delivery apps must pay their workers a minimum hourly wage. Under one plan, deliverers would be paid $33.27 per hour for time spent on active delivery.Ī second plan would pay them $19.96 hourly for the total time spent online and delivering.Ī final decision from the agency is expanded soon. Getting that pizza delivered could cost $5 to $7 more if the city adopts a new pay rate for delivery-app workers.Ī controversial proposal by the city Department of Consumer and Worker Protection would hike pay for GrubHub, UberEats, and DoorDash delivery workers far past the $15 minimum wage. Grubhub lobbies to loosen NYC’s pandemic-era fee cap law - as it sues city ‘Outraged’: NYC restaurants blast Grubhub over ‘phony’ lobbying pushĭidn’t make a Valentine’s Day reservation? Get Grubhub+ free, and enjoy 20% offĦ-year-old orders nearly $1.5K in pizza, jumbo shrimp and ‘endless’ chili fries on dad’s phone
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