A new quarterly report analyzing data from third-party restaurant delivery apps indicates that workers’ earnings increased by 64% — from $11.72 per hour to $19.26 per hour after tips — since last year and customers are placing more restaurant deliveries through the apps.
The data specifically covers the first quarter of 2024, when the minimum pay rate was at least $17.96 per hour and before the first annual increase went into effect in April, according to a press release.
“The data confirms what we know: when workers succeed, New York City succeeds,” said New York City Mayor Eric Adams. “I am encouraged that the report released today reveals that delivery workers made 64% more than they did during the same time last year thanks to our implementation of the minimum pay rate rule. We are tackling our city’s affordability crisis head on by helping put more money into the pockets of working people, while simultaneously supporting a growing restaurant economy. Our administration will continue to stand shoulder-to-shoulder with working-class New Yorkers."
The inaugural quarterly report reveals that worker pay is significantly higher, impacts on the restaurant industry have been minimal and the demand for app-based food delivery remains strong, the news release said.
Delivery workers earned an average of $19.26 per hour after tips, comprised of $16.95 per hour paid by apps — a 188% increase since last year — and $2.31 per hour paid in tips — a 60% decrease since last year. The decrease in tipping is primarily the result of changes some apps have made to their interfaces to make it more difficult for consumers to tip. Due to utilization rate limits not taking effect until April 1, 2024, the average worker pay rate was below the effective minimum pay rate during this first quarter.
Delivery workers earned a combined total of $28.3 million per week, a 42% increase from Q1 2023 to Q1 2024. For the typical worker who works for 20 hours a week, that is an increase of at least $12,000 more per year.
The number of deliveries increased by 8% — from more than 2.56 million in Q1 2023 to more than 2.77 million in Q1 2024 — showing that the industry continues to grow even while workers earn a more dignified wage.
Consumers’ average total cost, inclusive of subtotal, tips, fees, and taxes only increased by $0.76 from $38.35 in Q1 2023 to $39.11 in Q1 2024. Apps raised delivery fees by an average of $2.30 per order, however the average tip amount decreased by $2.64.
In June 2023, the Adams administration announced the final minimum pay rule, effective July 12, 2023, following two public hearings and thousands of public comments. In early July 2023, the major delivery apps sued the city, seeking to stop the minimum pay rate from taking effect.
In September, the New York State Supreme Court ruled in the city's favor, allowing enforcement of the minimum pay rate of $17.96 to begin. The apps appealed the State Supreme Court's ruling, and in late November, the Appellate Division, First Judicial Department denied the appeals, paving the way for DCWP to finally begin enforcing the minimum pay rate.
“The minimum pay rate has been a true success for our city — it has helped lift up some of our hardest working New Yorkers while still allowing the app-based restaurant delivery industry to grow and thrive,” said DCWP Commissioner Vilda Vera Mayuga. “We will continue to monitor the apps’ compliance to ensure workers are being paid appropriately, but any worker who has questions or complaints should reach out to us immediately.”
DoorDash, an online food ordering and delivery service, said the city is cherry picking data to highlight, and higher costs are causing "thousands of lost orders for Dashers to deliver and millions of dollars in lost revenue for local businesses," according to a company spokesperson.
In a May report, the company said small businesses in the city lost about $17 million in revenue over a two-month period in 2024.
Delivery Workers can visit DCWP's Third-Party Food Delivery Services page or call 311 and say "delivery worker" to learn more about the minimum pay rate. Workers can also submit questions or file complaints related to the minimum pay rate or other delivery worker laws in multiple languages online or by contacting 311.
