Key Points
DoorDash Inc (DASH.N) and other app-based food delivery companies filed lawsuits on Thursday seeking to strike down New York City's novel law setting a minimum wage for delivery workers...
The companies filed separate complaints in New York state court claiming the law, which takes effect July 12, is based on a misunderstanding of how the food delivery industry works..
The law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025..
Delivery apps would need to increase the number of trips completed per hour to absorb the new labor costs, forcing them to shrink service areas and harming consumers and restaurants, the companies said.. Uber and DoorDash in May both raised their annual earnings forecasts after beating quarterly revenue expectations, stemming from an increase in orders for food, groceries and convenience products...
Supporters of the law, which is the first of its kind in the U.S., say it is needed because delivery workers in the city earn about $11 an hour on average after expenses, far below the city's $15 minimum wage...
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Uber, DoorDash lose bid to block NYC minimum wage for delivery workers
28, Sep, 23A New York state judge on Thursday rejected a bid by Uber Technologies Inc (UBER.N), DoorDash Inc and Grubhub Inc to block New York City's novel law setting a minimum wage for app-based delivery workers.
DoorDash, Uber file lawsuits against New York City's minimum wage law
07, Jul, 23The new law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay workers hourly or per delivery, which would be based on the hours workers are logged into the app