The new rules would disproportionately impact consumers, couriers, and the city’s restaurants, the companies said

Uber Eats (UBER), DoorDash (DASH), and Grubhub (TKWY) are suing New York City over a new law that would set a minimum wage for app-based food delivery workers, saying it would lead to higher costs and reduced service that would disproportionately impact customers, couriers, and the city’s restaurants.

Key Takeaways

• Food delivery companies Uber Eats, DoorDash, and Grubhub are disputing an NYC law that would set a minimum wage for workers based on the time they spend on food delivery apps.
• The law, set to take effect July 12, would require platforms to pay workers $17.96 an hour for time spent logged onto a food delivery app, or 50 cents per minutes spent on a trip.
• The companies say the new law would lead to higher costs, reduced service, and lower revenue for the city's customers, couriers, and restaurants.

The law, set to take effect July 12, would require food delivery platforms to pay contract workers $17.96 an hour for time spent logged onto a food delivery app or 50 cents for every minute they spend on a trip. Rates would increase to $18.96 per hour by April 2024 and $19.96 per hour by April 2025.1

Compensating couriers for time spent on apps is a flawed process, the companies say, as delivery workers are typically active on multiple apps at the same time and are free to decline orders. Costs could increase substantially if multiple apps are forced to...

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