Operations
Food delivery services sue NYC to block pay stipulation
July 10, 2023
DoorDash, Grubhub and Uber Eats are suing New York City to stop the minimum pay rules that go into effect this week.
The minimum pay regulation brings the hourly rate to $17.96, according to a USA Today report. The current hourly pay rate for the city's 60,000 delivery persons averages about $7.09.
"The city's entire rule depends on the false assumption that restaurants make no money on deliveries — it must be paused before damaging restaurants, consumers and the couriers it purports to protect," Uber spokesperson Josh Gold said in a statement.
DoorDash and Grubhub filed a lawsuit together while Uber filed a suit on its own.
The delivery services contend the pay stipulations are financially burdensome. The city claims the new pay rate is fair.
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