July 11, 2024 Office of the Mayor News
Pay Increases Accompanied by Increase in Customer Delivery Orders, Strong Industry
Over First Quarter of 2024, Delivery Workers Made 64 Percent More Compared to Same Quarter Last Year Before Minimum Pay Rate Took Effect
NEW YORK – New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today released the first quarterly report analyzing data that third-party restaurant delivery apps submitted to DCWP as part of its monitoring of compliance with the city’s minimum pay rate. The report indicates that workers’ earnings increased by 64 percent — 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.
“The data confirms what we know: when workers succeed, New York City succeeds,” said Mayor Adams. “I am encouraged that the report released today reveals that delivery workers made 64 percent 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. I thank DCWP for their enforcement of this crucial worker-protection law and putting working people first.”
“From day one, this administration has centered the needs of working-class people,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Today's numbers are proof that the nation’s first minimum pay rate law is not only providing workers greater means to support themselves and their families, but also growing our economy further. Thank you, Mayor Adams and Commissioner Mayuga, for delivering for the more than 60,000 app-based delivery workers in our city.”
“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 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.”
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. Key takeaways of the report include:
Workers are earning significantly more:
Delivery workers earned an average of $19.26 per hour after tips, a 64 percent increase from the same quarter the year prior before the minimum pay rate was in effect.
The $19.26 per hour average is comprised of $16.95 per hour paid by apps — a 188 percent increase since last year — and $2.31 per hour paid in tips — a 60 percent 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. See report for more details.
Delivery workers earned a combined total of $28.3 million per week, a 42 percent 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.
Apps are using workers’ time more effectively:
The amount of time workers spent “on-call,” or waiting for an order, decreased 39 percent from Q1 2023 to Q1 2024 — this is time that workers were not previously paid for. During the same period, the amount of time workers spent on trips increased by 15 percent, demonstrating that the apps made better use of workers’ time.
Delivery workers completed an average of 1.89 deliveries per hour in Q1 2024, up 25 percent from 1.51 deliveries per hour in Q1 2023.
Consumers and restaurants have not been negatively impacted:
The number of deliveries increased by 8 percent — 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 — or 2 percent — 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 a monthslong rulemaking process that included 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.
Following the passage of a local law, DCWP published a study, in 2022, which drew from data obtained from restaurant delivery apps, surveys distributed to delivery workers and restaurants, testimony, extensive discussions with stakeholders on all sides, and publicly available data.
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.
This minimum pay rate is just one part of the city's holistic approaches to improving working conditions for delivery workers. In his 2024 State of the City address, Mayor Adams announced plans to create the New York City Department of Sustainable Delivery, a first-in-the-nation regulatory entity to establish clear goals and guidelines for the future of deliveries. In February 2024, Mayor Adams and the New York City Department of Transportation also announced five public e-battery charging locations as part of the city's six-month pilot program to test safe, public charging of lithium-ion batteries by an initial group of 100 delivery workers. Additionally, the Adams administration has launched a program for first-of-its-kind street Deliveristas Hubs, utilizing existing infrastructure to provide a place for workers to rest and recharge.
“Our 60,000-plus delivery workers make New York City run,” said New York State Assemblymember Jenifer Rajkumar. “At any time and in all weather, they are out in the streets bringing us whatever we need. They are overwhelmingly immigrants working day and night to achieve the American Dream. Just as they deliver for us, we delivered for them by implementing a first-of-its-kind minimum hourly pay rate that has risen to $19.26 – a 64 percent increase in pay for some of our hardest working New Yorkers. These deliveristas deserve to stand on their own two feet, and guaranteeing their wages is a testament to our commitment to a city that uplifts all workers.”
“As former commissioner of the Department of Consumer and Worker Protection, I welcome the news that delivery workers have benefited with higher earnings because of the new minimum pay rate,” said New York City Councilmember Julie Menin, chair, Committee on Consumer and Worker Protection. “I acknowledge Commissioner Mayuga and her team for the successful implementation and monitoring of this policy. The new rates ensure that New York City remains a leading advocate for delivery workers, setting a powerful example for cities across the nation.”
“All working New Yorkers deserve fair compensation and workplace protections; local legislation and budgetary allocations have helped ensure just treatment and benefits for delivery workers,” said New York City Councilmember Carlina Rivera, chair, Committee on Cultural Affairs and Libraries. “The data shows that efforts are paying off, with delivery workers earning 64 percent more than last year, and we must ensure these laws are enforced so that hard working New Yorkers remain protected.”
“New York’s delivery workers are the true economic engines of the delivery industry, making app-based delivery growth possible,” said Ligia Guallpa, executive director, Worker’s Justice Project. “Their pay should make it possible for them to live with dignity in the city they serve. These strong results show yet again that we don’t have to make the false choice between business growth and workers’ rights; with enough vision, just wages can and ought to be the foundation for business models that thrive. We are grateful to Mayor Adams and Department of Consumer and Worker Protection Commissioner Mayuga for having that vision and for standing alongside New York's deliveristas in their historic campaign for decent wages and working conditions.”
“It is no surprise that the city’s minimum pay rate increase not only put more money in the pockets of delivery workers, but also strengthened the industry overall,” said Manny Pastreich, president, 32BJ SEIU. “32BJ SEIU applauds this administration for taking the necessary steps to support some of the hardest-working New Yorkers. We congratulate the delivery workers on their hard-won victory, and we thank Mayor Adams for his leadership and the Department of Consumer Affairs and Worker Protection for their enforcement of this vital worker protection law.”
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