DoorDash will begin rolling out new minimum pay rules in New York City to its couriers, today. It decried minimum pay regulations, noting that they are “extreme” and come at a cost for its customers.
“For our platform to work, it has to work for everyone who uses it—Dashers, merchants, and consumers alike. But consumers across the five boroughs are now facing higher fees to help balance these excessive costs, which we estimate has resulted in merchants earning $3.5 million less revenue than they otherwise would have and 200,000 fewer orders for Dashers to deliver,” said DoorDash in a statement.
The food delivery service said that it is changing how its platform works to meet the minimum pay rules.
First, it will give DoorDash drivers $17.96 per hour of active time, before tips, and the option to qualify for additional weekly pay adjustments. Additionally, the rate will increase to $19.56 on April 1.
The platform is also introducing a new program to support those that complete the most offers and provide high-quality service. It will allow DoorDash employees to receive early access to schedule when they want to work, be eligible to qualify for priority access to begin working more quickly, and have the opportunity to receive weekly bonus rewards.
DoorDash said that the new service means that DoorDash drivers will “no longer be able to work whenever they like and end up earning less money as a result.”
“We expect that there will be further changes as such an extreme minimum pay rule weighs heavily on everyone who uses our platform across the five boroughs,” said DoorDash in a statement, adding that the city acknowledged that the changes can create less flexibility for drivers and compel businesses to restrict where in the city the service can be provided.