For Uber Eats delivery driver David Serbas of Astoria, word from City Hall that app-based delivery workers would be seeing their minimum pay rate go up next month from about $7 an hour to nearly $18 an hour had the part-time student and part-time delivery worker feeling very hopeful. 

“It’s very helpful because you know sometimes delivery is very slow,” said Serbas. “We need to pay bills, injuries. Now it is better!”

What You Need To Know

  • App-based delivery workers would see minimum pay rate go from about $7 an hour to nearly $18 an hour starting July 12

  • Some critics are concerned that a rake hike will make it more expensive for customers to order food for delivery and lead to fewer delivery orders for small businesses

  • The rate hike does not factor in tips

At City Hall Sunday, Mayor Eric Adams and the city’s Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga touted the advantages of the plan, which takes effect July 12.

They say when this effort is fully phased in on April 1, 2025, the minimum rate of pay for app based drivers will go up to $19.96 an hour. 

“This new minimum pay rate will ensure that they earn a better day’s pay,” said Mayuga, while still allowing for flexibility for both apps and workers.

“When the deliveristas are paid the right salary, they are going to recycle the dollars back into the community,” said Mayor Adams.

Despite this, Paul Zuber, the executive vice president for the Business Council of New York State, says while app-based delivery workers certainly deserve a higher wage, he believes the main problem with the plan is how it will impact restaurant owners, even customers.

“There are some estimates it will be a little bit more than $5 an order and that in turn is going to have a negative impact on local small businesses,” said Zuber. “Restaurants will get less orders. That will decrease and that will have a domino effect that we will worry about if we raise things too high.”  

Zuber says with some apps charging as much as 50 cents a minute for travel or delivery time, some drivers might end up making up to $33 an hour, after factoring in a minimum hourly rate of nearly $20. 

Two friends from Astoria who often order from delivery apps say the spike in pay could have an impact on whether they overtip.

G.R. Banks and Tyrik Barton said they would tip in the 15% range, but Barton adds, “not too much more because they are getting paid very well. $18 an hour, yeah, they’re gonna get less tip, not gonna lie.”

Meantime, a spokesperson for DoorDash has called the city’s decision “deeply misguided” and said the company would explore all paths including litigation.