DoorDash updated its driver policies Monday in New York City following a judge’s dismissal last week of an appeal filed by DoorDash, Grubhub and Uber Eats to overturn a delivery driver minimum wage law. New York City now requires all delivery companies to pay a minimum of $17.96 an hour. The companies sued New York City in July in an attempt to block the delivery minimum wage law.
“Unfortunately, these regulations will significantly increase the costs of facilitating delivery in NYC and force us to make a number of operational changes,” the company said in a statement.
DoorDash said its New York City couriers will now earn a minimum of $29.93 an hour of active time. The pay rate doesn’t include tips and the company said its drivers have the opportunity to earn more than the minimum wage. By contrast, New York City’s minimum wage is $15.
“Dasher earnings will be reviewed weekly to see if their DoorDash pay meets the earnings minimum, and any Dashers who earn below the required minimum will receive a pay adjustment,” the company said.
DoorDash said it has paused its Priority Access program in New York City, which gives couriers with high ratings priority to higher-paying jobs. With a guaranteed minimum wage, “the benefits offered by this program will not apply in NYC,” the company said. DoorDash’s Top Dasher program, which rewards highly rated drivers with special benefits, will remain in effect for qualified drivers.
The company said it will have to hike fees in New York City, but didn’t say by how much. Because of the fee increase, DoorDash said it moved the customer tipping option to after checkout, per a recommendation by the NYC Department of Consumer and Worker Protection. Customers will be able to tip their drivers up to 30 days after their completed order.
