New York lowered minimum wage rates for food delivery couriers
2023.03.08 09:22
New York lowered minimum wage rates for food delivery couriers
By Ray Johnson
Budrigannews.com – According to Citi analysts, the proposed NYC delivery minimum wage is more in line with how app-based businesses currently compensate couriers.
The analysts explained that the proposed minimum wage rates for app-based restaurant couriers have been reduced and an alternative method of calculating rates based on trip time has been added by the NYC Department of Consumer and Worker Protection earlier today.
They added that the new minimum rates are now 16% lower for 2025 and 6% lower for 2024 than the original proposal after taking the changes into account.
It’s a positive development, according to Citi, and Uber (NYSE: DoorDash (NYSE: UBER), Just Eat Takeaway (AS: DASH), and “appear confident they have levers to mitigate changes in courier pay to ensure minimal impact on overall profitability,” according to TKWY. They kept their Buy rating for each of the three stocks.
The analysts stated, “The next important date will be a public hearing on April 7th, recommending implementation by June, at the earliest.”
