DoorDash, Uber Eats respond to new minimum pay rate in NYC

In response to New York City’s recent move to increase the minimum pay rate for app-based food delivery workers, both DoorDash and Uber Eats announced on Monday that they will eliminate the tip prompt from the checkout page on the app. 

DoorDash said the new minimum pay change has forced delivery fees to go up, and as a consequence, the option to tip delivery drivers would appear after the checkout page, according to reporting from local affiliate Fox 5. Uber Eats is doing something similar. The two retailers both announced that workers will now make $29.93 per hour of active time.

In a statement, DoorDash said New York City’s minimum wage increase would have “significant consequences for everyone who uses our platform.”

Last week, the New York state appeals court ruled that delivery services must either pay couriers $17.96 an hour plus tips or pay per delivery around 50 cents a minute. In April 2025, the rate increases to $20 an hour.

DoorDash, Uber Eats, and Grubhub attempted to block the pay raise but were unsuccessful. In his decision, New York Acting Supreme Court Justice Nicholas Moyne rejected the argument that app-based delivery workers are considered independent contractors, thus general minimum wage laws do not apply to them. He also said no to several other claims, including that the law was invalid because it covers workers who deliver food from restaurants but not from grocery and convenience stores.

 

 

 

Source: supermarketnews.com

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