Uber & DoorDash Sue NYC to Block Minimum Wage Increase

Rival food delivery companies ban together to prevent the new law.

July 07, 2023

New York will raise minimum wage for food delivery workers, but major delivery companies are fighting it.

Uber, Grubhub and DoorDash filed a temporary restraining order and a preliminary injunction against the state’s proposed law until the court can rule on the merits of their arguments, which claim it will harm workers more than help. The rule is set to go into effect on July 12.

According to bloomberg.com, “Uber said in its complaint that the rule would force the apps to shrink their delivery radius and “cause immediate and irreparable harm to Uber in the form of lost goodwill with couriers and customers and in the form of nonrecoverable costs.”

For the new rule, companies would either pay a flat hourly rate of $17.96 or pay per delivery at about 50 cents a minute, not including tips. The food delivery companies argue that the pay structure won’t work for gig-based work and could end up reducing a courier’s earning power while raising fees for customers.

The city commented that it was “disappointed” in the lawsuit.

“These workers brave thunderstorms, extreme heat events and risk their lives to deliver for New Yorkers—and we remain committed to delivering for them,” Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga said in a statement. “The minimum pay rate will help uplift thousands of working New Yorkers and their families out of poverty.”