New Yorkers Are Paying 58% More In Food Delivery Fees Than Last Year
Following a report from New York City Department of Consumer and Worker Protection (DCWP), food delivery fees have spiked 58% since the minimum wage was increased to $16 in NYC.
And though earnings for delivery workers have been significantly raised, there’s been a 9% drop in active worker accounts since last year. “DCWP predicted in its 2022 study that couriers would earn more, but that earning opportunities would be concentrated in fewer hands,” shared a GrubHub spokesperson, and so far that’s proving to be the case. “The couriers who are still able to work need to work much harder, doing 80% more deliveries per hour than they did before the rule took effect,” echoed UberEats in a statement after losing 12,000 workers since the law was implemented.
Food delivery service apps like Uber Eats, GrubHub and DoorDash have had to increase the cost of their added fees to manage the surge in wages, causing New Yorkers to pay 58% more in food delivery fees than last year (up an average of $2.30 per order). Now an average order, including fees, tips and taxes, costs around $39.11.
These high service fees are one of the reasons it’s believed delivery workers are now making less in tips. According to the Adam’s administration, delivery workers are seeing an average drop in tips by $2.64.
And though New Yorkers are paying more for delivery, that didn’t stop them from ordering. In fact, deliveries rose 8% over last year totaling to 2.77 million in Q1 2024.
See more from the report here.
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