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Uber, DoorDash, and Grubhub are suing New York City to block a new law they claim will impair the delivery economy.
Beginning July 12, delivery drivers in New York City must earn a minimum wage of about $18 an hour, according to a law signed by Eric Adams last month. While some advocacy groups applauded the ruling, the delivery apps argue that the workers, who are considered independent contractors, will be worse off.
Drivers currently earn a base pay for each trip plus a tip, which is selected by the customer. The new minimum wage would require delivery apps to either pay drivers roughly 50 cents per minute of every trip or pay drivers $17.96 per hour they are active on the app.
Setting this minimum could eliminate the flexibility of delivery jobs, which is one of the reasons many people rely on the gig, DoorDash stated in a letter to the Department of Consumer and Worker Protection, the agency tasked with setting the minimum wage.
And some drivers agree. Alberto Mendes has been a delivery worker for two decades and believes the law gives delivery companies more agency to determine workers' schedules.
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"They shouldn't have done this," Mendes told Insider. "Now they'll make us work whenever they want. Even though we're not employees,...
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