New York City Mayor Eric Adams mandated a massive pay raise for ‘Gig’ workers, namely delivery drivers for organizations like DoorDash and Ubereats, in the Big Apple, raising their pay from an average of $7.96 per hour to $17.96 per hour – a 225 percent increase and nearly 3 dollars more than New York’s “official” 15 dollars minimum wage.
Ignoring protests from industry giants, Adams’s proposal will see annual increases in the wage relative to inflation, with just under 20 dollars per hour being the planned “gig wage” by 2025.
Below is a video of Adams’s statement following the beginning of the minimum wage’s implementation.
The policy is planned to go into full effect on July 12th.
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City officials and worker’s rights groups have celebrated the hike as a massive victory for delivery drivers. In his public statement, the New York City mayor said the law would significantly improve the lives of full-time ‘gig’ workers.
“This new minimum pay rate, up by almost $13.00 an 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,” Adams said to a crowd of onlookers, “I encourage everyone who’s listening to this, don’t forget to tip.”
The delivery firms are less confident in the policy. Several big-name delivery services publicly denounced the law and listed a series of potential measures to offset the massive new cost.
…and, the layoffs begin!
— Duke Scott (@DukeScott60) June 13, 2023
Industry leader DoorDash released a statement slamming the law, saying that the massive labor price hike could be passed off to the consumer or adversely affect the delivery drivers. Speaking to Business Insider, DoorDash called the measure “extreme” and even threatened litigation against Mayor Eric Adams.
“Given the broken process that resulted in such an extreme final minimum pay rule, we will continue to explore all paths forward — including litigation — to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on.”
A spokesperson for giant UberEats went as far as threatening to remove tipping, hoping that the decision would offset the increased food and delivery prices that consumers may face.
“The city is lying to delivery workers – they want apps to fund this increase by eliminating jobs and reducing tipping while forcing the remaining workers to deliver orders faster.” ~UberEats spokesman Josh Gold
DoorDash and fellow industry leaders have also warned about a massive decrease in delivery drivers owing to cost-saving measures – which could include a more rigid schedule and a fixed amount of hours. Where previously ‘gig’ work was meant to supplement another fixed income, the new minimum wage law – and the response from the industry – may take away the flexibility and ease that made gig work appealing in the first place.
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Consumers have expressed mixed support for Adams’s dramatic minimum wage hike. Some have said that the previous $7.96 per hour is “slave-like” in the high-cost-of-living city.
Door dash might as well have slaves considering the criminally low amount they pay delivery workers
— Simon A 🇪🇺 🇺🇦 (@teambringit) June 14, 2023
Some weren’t fans of the services in the first place. One Twitter user argued – a bit profanely – that food delivery services are only used by “lazy” people.
Still can’t wrap my head around who uses these services, you really pay an extra $20 for your food rather than drag your lazy ass up off the couch…
— Nathan Fisher (@GonzoFilms) June 13, 2023
Detractors of Adams’s policy fear the new law will force firms to significantly increase delivery costs – which the industry has already indicated an interest in doing.
If you thought your DoorDash delivery was expensive already, wait until New York City adopts its new $18 minimum wage for delivery workers. Get ready for $100 cold tacos https://t.co/5khrnGj5MA via @businessinsider
— Alistair Barr (@alistairmbarr) June 13, 2023
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