Three months have passed since the New York State Supreme Court’s Appellate Division upheld legislation enacted over the summer allowing enforcement of the nation’s first minimum pay rate for third-party, app-based restaurant delivery workers.
The ruling mandated that popular delivery platforms, including Uber, DoorDash, and Grubhub, pay their workers at least $17.96 per hour, increasing to $19.96 per hour when fully implemented in 2025, with annual adjustments for inflation.
This ruling nearly triples the old minimum wage of $7.09 for app-based delivery workers.
Officials seem to be all in, with New York City Mayor Eric Adams, Deputy Mayor Maria Torres-Springer, and Consumer and Worker Protection Commissioner Vilda Vera Mayuga all expressing their approval of the court’s decision.
“Yet another promise made and promise kept by our administration on behalf of working New Yorkers,” said Mayor Adams, emphasizing the importance of holding apps accountable for fair compensation.
Commissioner Mayuga added, “The minimum pay rate of at least $17.96 per hour will help lift thousands of New Yorkers and their families out of poverty, while still allowing flexibility for both apps and workers.”
But do these happy sentiments paint the full picture?
Under the ruling, apps now have the flexibility to choose whether to pay their drivers hourly or per trip time. With per trip time, workers now earn approximately 55 cents per minute, adding up to $33 an hour.
Drivers are now claiming that the actual impact on their earnings is a lot more complicated than a simple pay raise.
The new hourly rate applies only to “active time” that drivers spend delivering food. If an order takes 15 minutes, the driver would be paid for only those minutes spent actively delivering a food order.
All other time spent working, including looking through the app to find orders, is not paid.
“Don’t let the $33 an hour make you think every delivery driver is making that just by turning on the app,” said an Uber driver who wished to remain anonymous.
“I was actually making more before the law,” said Manhattan driver Edward Lee. “I am very fast with my deliveries and because we are [now] paid by time this caps the amount we can possibly earn per hour.”
The experience differs from driver to driver. For some, the changes have had positive effects.
Tipping After, Not Before
Whether drivers find themselves earning more or less in hourly wages, one undeniable outcome since the ruling is the noticeable scarcity of tips. Customers are asked to tip after the delivery as opposed to before.Previously, drivers could filter out orders with little to no tip included.
“Before the new law there was a certain amount of excitement in finding a good order,” said Mr. Lee.
Many now claim that the entire tipping landscape is drastically different, with drivers reporting a significant decrease in tips received.
“Before this change, over 60% of my orders had tips,” said an anonymous driver. “Now, I’ve done 60 trips so far and only gotten 4 tips.”
Delivery workers are facing a mixed bag of experiences. While some appreciate the consistency of earnings due to the new pay structure, others lament the disappearance of promotions, quests, and surge pays.
Many also claim that since the ruling the apps are less supportive of the drivers.
“Certain apps like Grubhub have tightened their expectations from the drivers with shortened delivery windows and being less tolerant of any driver’s mistakes,” said Mr. Lee. “It’s almost like they want to get rid of drivers because they have too many.”
Additionally, one of the biggest changes faced by drivers is the addition of a scheduling system. The apps assign drivers specific working hours, eliminating the flexibility of logging into the app and working at one’s convenience.
“This once cherished idea of flexibility is now crushed,” Mr. Lee explained.
On top of that, many claim that the apps now prioritize “top-tier” drivers—those who log more hours—by granting them access to peak hours, resulting in an increased number of orders.
“It becomes a self-perpetuating loop that if you’re not a full-time driver it’s unlikely you will receive many hours to schedule,” explained another anonymous driver. “Now, a part-time worker will never be able to compete with a full-time worker.”
Customers are also raising issues, with some saying that fees have increased amid a steep decline in service.
“Literally from one day to the next, drivers have seemingly stopped using insulated bags to carry food,” explained an anonymous DoorDash customer. “Three of five orders this week have arrived cold with packaging wet from the elements.”
Customer Concerns
Customers also have begun to complain about the noticeable increase in delivery fees, with some saying that orders have almost doubled in price.“[Those] fees do not go to the driver,“ one driver said. ”[They] go to Uber.”
It all becomes a self-perpetuating cycle. The higher the fees, the less likely customers are to order and tip.
“Meaning less customers—especially customers that are willing to tip,” stated an anonymous driver.
Apps like DoorDash blame the negative changes on the court’s ruling.
“Policies have consequences,” a spokesperson said. “And these changes come as a direct result of the extreme earnings standard imposed in New York City.”
Uber spokesperson Josh Gold added, “The city’s own study made clear that the new rule eliminates jobs, discourages tipping, and forces couriers to go faster while accepting more deliveries.”
Amidst these challenges, the question arises—should customers still tip?
Some drivers believe that tipping should be based on the quality of service.
“If your driver gets your food there hot, on time, and with courteous professionalism, then he’s earned a tip,” one driver explained. “Every dollar helps.”
Others take a harder line, explaining that tips are crucial and expected: “Absolutely without question [should customers tip their driver.]”
As the debate over the minimum pay rate continues, it underscores the complexity of implementing changes in the gig economy.
“This is not an easy job,” explained an anonymous driver. “This job is about hard work and logistics. There is much more that goes into it than people originally may think.”
