For the first time in the U.S., a minimum wage is being introduced for workers in the prepared food delivery industry who work through services like Uber Eats and GrubHub. With a minimum wage of $15 an hour in New York City, food delivery workers will now be paid $17.96, plus tips. And by 2025, the rate will rise to $19.96, adjusted for inflation.
The real wages of the 60,000 people who deliver food in New York City barely make it to $7.09 an hour. This is due to the fact that companies do not hire them as employees, but work with them as contractors. Because of this, delivery people pay high taxes and also incur all the associated costs of traveling around the city. The New York City Department of Transportation became concerned about protecting people working through aggregators back in 2022, when it set minimum wages for Uber and Lyft drivers.
