New Yorkers See 58% Rise in Food-Delivery Fees

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Uber Eats,Grubhub,Uber Technologies Inc.

(Bloomberg) -- New Yorkers have paid 58% more in food-delivery fees since before a minimum-wage law went into effect in late 2023, according to a city agency...

-- New Yorkers have paid 58% more in food-delivery fees since before a minimum-wage law went into effect in late 2023, according to a city agency report, suggesting that restaurant-delivery services have passed on the bulk of these rising costs to customers.While merchants also paid more fees to food-delivery services offered by Uber Technologies Inc., DoorDash Inc. and Just Eat Takeaway.com NV, the parent of Grubhub and Seamless, it is customers who are bearing the brunt of the impact.

The report also found that the number of contractors delivering food fell 9% in the first quarter from a year earlier. Representatives from Uber Eats, Grubhub and DoorDash point to the decline as proof that the minimum-pay model isn’t working.

“We will continue what we’ve been focused on since these policies took effect — working to find a better approach that works for Dashers, merchants and customers alike,” DoorDash said in a statement. “These strong results show yet again that we don’t have to make the false choice between business growth and workers’ rights, said Ligia Guallpa, the executive director of the Worker’s Justice Project, a nonprofit that lobbied for the minimum-pay legislation.Telus tells Ontario call centre workers to relocate or risk losing their job

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