Mayor Adams, Commissioner Mayuga announce pay rise for delivery workers

Mayor Eric Adams and Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga have announced a significant boost in pay for the city’s delivery workforce.

According to the first quarterly report analyzing data from third-party restaurant delivery apps, workers’ earnings have surged by 64 percent, rising from $11.72 per hour to an impressive $19.26 per hour after tips.

The report, which covers the first quarter of 2024, reveals that the minimum pay rate of at least $17.96 per hour, set before the first annual increase in April, has substantially benefited over 60,000 app-based delivery workers in New York City.

This uplift comes amid a backdrop of increasing restaurant deliveries, showcasing the resilience and growth of the industry despite the wage enhancements.

“The data confirms what we know: when workers succeed, New York City succeeds,” said Mayor Adams.

“This 64 percent increase in earnings is a testament to our commitment to tackling the city’s affordability crisis and ensuring working-class New Yorkers have more money in their pockets. 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.”

“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,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “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.”

The report’s key findings are compelling. Delivery workers’ average hourly earnings rose to $19.26 after tips, marking a 64 percent increase from the previous year. This average comprises $16.95 per hour paid by apps (a 188 percent increase) and $2.31 per hour in tips (a 60 percent decrease due to interface changes by some apps). Workers collectively earned $28.3 million per week, a 42 percent increase from Q1 2023. A typical delivery worker, clocking in 20 hours per week, saw an annual income increase of at least $12,000. Additionally, “on-call” time decreased by 39 percent, while time spent on trips increased by 15 percent, enhancing efficiency. Workers completed an average of 1.89 deliveries per hour, up 25 percent from the previous year. The number of deliveries rose by 8 percent, from 2.56 million in Q1 2023 to 2.77 million in Q1 2024. Consumers’ average total cost per delivery only increased by $0.76, or 2 percent, demonstrating minimal impact on customers.

“Our 60,000-plus delivery workers make New York City run,” said Assemblymember Rajkumar. “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.”

“I welcome the news that delivery workers have benefited with higher earnings because of the new minimum pay rate,” said Councilmember Menin. “The new rates ensure that New York City remains a leading advocate for delivery workers, setting a powerful example for cities across the nation.”

“The data shows that efforts are paying off, with delivery workers earning 64 percent more than last year,” said Councilmember Rivera. “We must ensure these laws are enforced so that hard-working New Yorkers remain protected.”

The Adams administration continues to spearhead initiatives aimed at improving working conditions for delivery workers. These include the creation of the New York City Department of Sustainable Delivery, public e-battery charging locations, and the establishment of street Deliveristas Hubs for workers to rest and recharge.

Mayor Adams’ proactive approach, coupled with Commissioner Mayuga’s rigorous enforcement, underscores New York City’s commitment to uplifting its workforce and fostering an equitable economy. Delivery workers are now better positioned to achieve economic stability and contribute to the city’s vibrant restaurant industry.