Food Delivery Workers In NYC Face Reduced Hours And Lower Tips Due To The Increase In Minimum Wage: Report

Wagswoofs – According to a report, food delivery workers are experiencing a decrease in both their working hours and tips as apps like UberEats aim to balance out the costs resulting from New York City’s recently implemented minimum wage hike.

According to a report by Bloomberg, delivery drivers for DoorDash, Grubhub, and UberEats have noticed an increase in their overall take-home pay since the new minimum wage of $17.96 per hour was implemented on December 4th.

According to the publication, drivers’ pay stubs indicate that tips, which used to make up as much as half of their wages, now range from 5% to 15%.

According to a report by the city, prior to the implementation of the new minimum wage, delivery workers were earning an average of $11.12 per hour with tips, and as low as $4.03 per hour without tips.

The reason for the decrease in tips could be attributed to a modification made by delivery apps to their platforms. Now, customers can only tip once they have already paid for their orders, whereas before, the tipping option was included in the checkout process.

According to a blog post by Uber on December 4th, the company has announced its plans to introduce a new scheduling system next month. This system aims to reduce the number of couriers who can work on a daily basis.

App companies are now required to pay workers a fixed hourly wage instead of a fee per trip. As a result, these companies are expected to reduce the number of drivers on the road in order to manage their payroll expenses effectively.

According to a blog post by Uber, the new scheduling system will impose limitations on the number of couriers who can be online per hour. As a result, couriers will no longer have the freedom to go online and deliver at any time they choose.

According to Uber, priority on the schedule will be given to couriers who have completed the highest number of trips in the previous 28 days.

Uber has implemented a $2 fee for all delivery orders, and DoorDash has announced its plan to raise customer fees in the near future.

A DoorDash spokesperson told The Post on Tuesday that these changes are a direct result of the extreme earnings standard imposed in New York City. They emphasized that policies have consequences.

According to Josh Gold, the spokesperson for Uber, the city’s own study has clearly shown that the new rule implemented by the city has negative consequences. Gold emphasized that this rule leads to job losses, discourages tipping, and puts pressure on couriers to work at a faster pace while accepting more deliveries.

Concerns have been raised by activists who advocated for higher wages, expressing their worry that the adjustments made by the app companies may ultimately result in a decrease in workers’ earnings.

Ligia Guallpa, executive director of Los Deliveristas Unidos, explained that the intention behind the new policy is to send a clear message to deliveristas. The aim is to motivate them to work harder in order to ensure that the food is delivered quickly and in a warm condition.

According to Bloomberg, the app companies are now permitted by the new law to pay drivers a fixed rate of $29.93 per hour. This payment will only cover the time it takes to complete a trip, excluding the idle time. It is estimated that the idle time can make up to 40% of a driver’s shift.

In September, the app companies fought against the higher minimum wage in court but unfortunately lost their battle. The arguments presented by the companies were ultimately rejected by a New York State Supreme Court justice, thereby allowing the 2021 law to come into effect.

In April 2025, the law mandates a significant increase in the minimum wage, raising it to nearly $20.

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