Uber, DoorDash, and Grubhub have taken legal action against New York City in response to a new rule that mandates the payment of nearly $18 per hour to their delivery workers.
Through two separate lawsuits filed in the New York Supreme Court, these food delivery companies are seeking to prevent the implementation of the rule, which is scheduled to take effect next week.
DoorDash and Grubhub jointly argued in their lawsuit that the rule is “ill-conceived” and would result in “drastic” and “immediate” consequences. In a separate lawsuit, Uber warned that the city’s “grand marketplace experiment” would potentially jeopardize both restaurants and the growing food delivery market.
The rule, announced by New York City Mayor Eric Adams (D) and the New York City Department of Consumer and Worker Protection last month, requires food delivery companies to pay their couriers $17.96 per hour starting on July 12. This hourly rate would gradually increase to $18.96 in April 2024 and $19.96 in April 2025.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” stated Mayor Adams during the announcement back in June.
Uber argued that the rule is based on “flawed data resulting from biased surveys and unrealistic assumptions that amount to little more than wishful thinking,” a sentiment that DoorDash and Grubhub also emphasized in their joint lawsuit.
In their lawsuit, Uber added, “It is more important to prioritize the accuracy of courier earnings rather than rush the process by a month or two.”
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