Even in a tight labor market where the lowest-wage workers are seeing outsized gains, gig drivers, who deliver food or people for companies like Uber or DoorDash, are having a hard time notching pay wins.
Driving the news: A minimum wage of $17.96 an hour for food delivery workers in New York City was supposed to go into effect this week, but a last-minute lawsuit from the app companies put the law on hold.
Details: The new wage would more than double earnings for the 60,000 or so delivery workers. According to the city's estimates, they make below the $15 an hour minimum wage in the city, even with tips, and are also responsible for covering their expenses (an electric bike, health insurance, etc.).
In the lawsuit, Uber, DoorDash and Grubhub argue that the higher wages would raise prices for customers, decrease work for the delivery workers, and harm restaurants.
The big picture: The battle over NYC's law — it was already pushed back from a January start date — reflects the bumpy, uneven road to getting gig workers better pay and benefits.
It's been a patchwork effort, taking place across different localities — with no real end in sight — each met with fierce resistance from the app operators, some of which have gone from scrappy startups to multibillion-dollar public companies.
"It's going to go on for years, really," said Scott Devitt, a Wedbush analyst, emphasizing that he discounts any profit estimates from Uber to take all the labor fights into account.
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