Today, the Department of Consumer and Worker Protection announced a deeply misguided minimum earnings standard for delivery workers in New York City. This is the result of political posturing and an ill-considered policy passed by the City Council that has been exacerbated by a broken process run by DCWP.
The sad truth is that both the City Council and DCWP have chosen to ignore the unintended consequences this policy will cause, and how it will undermine the very delivery workers it seeks to support.
As we repeatedly made clear, to meet these new demands of such an extreme minimum pay rate, platforms like ours will have to increase costs on each order or reduce services in New York City. The impacts will be felt throughout the city: Dashers may see fewer opportunities to work when they choose, customers may be priced out of orders, and jobs at local restaurants may be lost — including many in low-income communities and communities of color.
DoorDash has and always will be unwavering in our commitment to Dashers, and we are not opposed to a sensible earnings standard that protects the flexibility that Dashers and delivery workers overwhelmingly value. Crucial to DoorDash’s commitment to grow and empower local communities is helping to ensure earning opportunities for all New Yorkers.
Rather than listening to the thousands of Dashers and workers in New York City like them who rightly expressed concern about the impact of losing the flexibility that they overwhelmingly value, the DCWP moved forward with a final rule that could reshape the local economy for the worse.
While well-intentioned, the extreme final minimum pay rate announced today will threaten earning opportunities for the thousands of New Yorkers who are looking for ways to make ends meet, while also raising costs for customers, reducing orders for local restaurants and other businesses, and limiting tax revenues for the City. The minimum pay rate far exceeds the standards that apply to nearly every other industry.
Given the City Council’s ill-conceived policy and the broken process that resulted in such an extreme final minimum pay rule, we will continue to explore all paths forward — including litigation — to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on.
Simply put: Dashers, merchants, and all New Yorkers deserve better than extreme policies like this. The connection that DoorDash offers to those who benefit from our platform today could come at a greater cost tomorrow. We hope that we can find a path forward that allows us to continue to best serve the communities across New York City.