As we have repeatedly made clear in recent months, the ill-conceived, extreme minimum pay rate for food delivery workers in New York City will have significant consequences for everyone who uses our platform. Unfortunately, these regulations will significantly increase the costs of facilitating delivery in NYC and force us to make a number of operational changes, which is why we’re providing an update on what local consumers and Dashers will be seeing beginning today.
Implementing new minimum pay requirements
Dashers who deliver in NYC will now earn at least $29.93 per hour of active time, nearly twice NYC’s $15 minimum wage for other workers. This rate excludes tips and is just a minimum, so Dashers still have the opportunity to earn more than the minimum. Dasher earnings will be reviewed weekly to see if their DoorDash pay meets the earnings minimum, and any Dashers who earn below the required minimum will receive a pay adjustment.
Moving tipping to after checkout in preparation for increased fees
These new regulations will force us to raise fees for orders in New York City. In order to better balance the impact of these new costs, we’re moving the option to tip in the DoorDash app to after checkout. This change comes as a recommendation by the NYC Department of Consumer and Worker Protection, and has been done to help ensure our platform remains affordable for all New Yorkers.
However, we know tips are still an important way for consumers to show Dashers their appreciation, so consumers will still be able to tip after checkout and for up to 30 days after they order. As always, 100% of a consumer’s tip goes to the Dasher.
Pausing our Dasher Priority Access program
With the changes required by NYC and the impact it will have on our system, we are pausing our Priority Access program, which gives Dashers who have high ratings priority on higher-paying offers. Since Dashers will earn a guaranteed minimum rate, the benefits offered by this program will not apply in NYC. The Top Dasher program is still available for qualified NYC Dashers.
We know that these are significant changes for the way Dashers will use the platform, and we always seek feedback from them on important topics like app functionality, new features, and public policy. We sent early communications to some Dashers making them aware of changes that would be coming to the platform and provided an opportunity to offer feedback so that we could most effectively implement these changes.
We anticipate needing to make other operational changes in response to these new regulations that will further impact the experience of consumers, Dashers, and merchants on DoorDash in New York City. In the meantime, we will continue to engage with policymakers and focus on what matters most: continuing to serve communities across New York City.