New York City food delivery workers face job losses despite wage increases

According to a report issued by city officials, thousands of food delivery workers have lost their employment even though the cost of having a meal delivered has skyrocketed. However, the increase in the minimum wage in New York City has increased income for those workers who have managed to stay in their jobs.

The raises are mostly being attributed to a December law that raised the minimum wage to over $20 per hour, which delivery services like Doordash, Grubhub, and Uber Eats attempted to overturn with a lawsuit last year, according to a report by the city's Department of Consumer and Worker Protection.

According to the report, those who were still working made $28.3 million each week, or 22% more, in the first quarter than they did in the previous one and 42% more than they did a year earlier. That's even though, according to the report, they worked 22% fewer hours per week.

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According to the report, the average hourly salary, including tips, increased significantly from $11.72 last year to $19.26.

However, the study found that the number of active worker accounts on delivery apps fell to 99,000, a drop of 8% from the previous quarter and 9% from a year ago.

Since the controversial law was passed, thousands of people have lost their jobs. City officials believe that 65,000 delivery workers, some of whom are working through multiple apps, are affected.

Food delivery expenses have risen by 10%, with a 12% increase in restaurant menu pricing and a 58% increase in app fees to fund rising salaries.

As a result, customers tip less. While delivery prices have increased by an average of $2.30 per transaction, tips have decreased by $2.64, according to a study issued on Thursday.

According to the report, the average cost of food delivery ended up rising by 76 cents to $39.11 per order.

Despite increasing costs, deliveries rose 8% to 2.8 million in the first quarter compared to last year, while customers paid 10% more, totalling $103 million, according to the report.

The delivery apps argue that DCPW's optimistic portrayal is, at best, deceptive.

According to UberEats, there is a queue for delivery jobs, with around 27,000 New Yorkers looking for work, for the first time.

“The couriers who are still able to work need to work much harder, doing 80% more deliveries per hour than they did before the rule took effect,” UberEats said in a statement.

UberEats also claims there is a waitlist now for the first time with some 27,000 New Yorkers seeking delivery work.

(With inputs from agencies)