{"id":229439,"date":"2024-06-07T13:26:47","date_gmt":"2024-06-07T13:26:47","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/06\/07\/nyc-comptroller-food-delivery-apps-are-blaming-minimum-pay-for-inflation-its-baloney\/"},"modified":"2025-06-25T17:17:38","modified_gmt":"2025-06-25T17:17:38","slug":"nyc-comptroller-food-delivery-apps-are-blaming-minimum-pay-for-inflation-its-baloney","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/06\/07\/nyc-comptroller-food-delivery-apps-are-blaming-minimum-pay-for-inflation-its-baloney\/","title":{"rendered":"NYC comptroller: Food delivery apps are blaming minimum pay for inflation. It&#8217;s baloney"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/06\/GettyImages-1523375856-e1717765779673.jpg?w=2048\" \/><\/p>\n<p><em>Brad Lander is the New York City Comptroller.<\/em><\/p>\n<div>\n<p>When New Yorkers order late-night Chinese food or a salad for lunch on their delivery apps, the meal appears just a few minutes later. But it isn\u2019t magic, technology, or a billion-dollar app company that brings it. It\u2019s a human being.<\/p>\n<p>Unfortunately, despite riding through rain, snow, heat, and NYC traffic, these delivery workers, or deliveristas, are often treated as barely human by the companies that rely on them. Some restaurants deny them the use of the bathroom during long shifts. The apps\u2019 payment algorithms pressure them to deliver meals on opposite ends of Manhattan in mere minutes\u2014so the fatality rate has become one of the highest for any job here. <\/p>\n<p>And until recently, delivery workers earned less than the minimum wage\u2014sometimes as low as $6 per hour. So last year, New York City became the first place in the country to do something about it. I was proud to be the City Council sponsor of the minimum pay bill, which raised the minimum pay floor for deliveristas to $17.96 an hour.<\/p>\n<p>No one gets rich at that rate, just above New York\u2019s minimum wage; but at least these hard workers can be assured a bare minimum.<\/p>\n<p>Unfortunately, <a href=\"https:\/\/fortune.com\/company\/uber-technologies\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/uber-technologies\/\" class=\"sc-80b85506-0 ovBKL\" rel=\"noopener\">Uber<\/a>, <a href=\"https:\/\/fortune.com\/company\/doordash\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/doordash\/\" class=\"sc-80b85506-0 ovBKL\" rel=\"noopener\">DoorDash<\/a>, and <a href=\"https:\/\/fortune.com\/company\/grubhub\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/grubhub\/\" class=\"sc-80b85506-0 ovBKL\" rel=\"noopener\">Grubhub<\/a> are doing everything in their power to undermine even that. They <a href=\"https:\/\/comptroller.nyc.gov\/newsroom\/nyc-comptroller-lander-applauds-court-ruling-on-deliverista-minimum-pay\/\" target=\"_blank\" aria-label=\"Go to https:\/\/comptroller.nyc.gov\/newsroom\/nyc-comptroller-lander-applauds-court-ruling-on-deliverista-minimum-pay\/\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\">threw up losing lawsuits<\/a> and <a href=\"https:\/\/comptroller.nyc.gov\/newsroom\/comptroller-lander-criticizes-adams-administrations-6-months-delayed-deliverista-subminimum-wage-weakened-by-app-corporate-lobbying\/\" target=\"_blank\" aria-label=\"Go to https:\/\/comptroller.nyc.gov\/newsroom\/comptroller-lander-criticizes-adams-administrations-6-months-delayed-deliverista-subminimum-wage-weakened-by-app-corporate-lobbying\/\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\">lobbied City Hall relentlessly<\/a>. Next, they made it more confusing for customers to tip.<\/p>\n<p>That\u2019s no surprise. They did the same back in 2018 when we passed a law\u2014which I also sponsored in the City Council\u2014guaranteeing minimum pay for Uber and <a href=\"https:\/\/fortune.com\/company\/lyft\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/lyft\/\" class=\"sc-80b85506-0 ovBKL\" rel=\"noopener\">Lyft<\/a> drivers. The companies assailed the law through lobbying, public relations campaigns, and lawsuits. They sent push notifications to drivers and customers to spread falsehoods\u2014including the threat that they would shut down. Just like they are doing now in Minneapolis, where the City Council recently passed a similar bill.<\/p>\n<p>But the law works. Six years later, Uber and Lyft are going strong in NYC. As of March 2024, New Yorkers and tourists took<a href=\"https:\/\/toddwschneider.com\/dashboards\/nyc-taxi-ridehailing-uber-lyft-data\/\" target=\"_blank\" aria-label=\"Go to https:\/\/toddwschneider.com\/dashboards\/nyc-taxi-ridehailing-uber-lyft-data\/\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\"> 686,475 Uber and Lyft trips per day<\/a>\u2014an all-time high since the pandemic. We estimate that app companies are making more than a million dollars a day here.<\/p>\n<p>The difference for drivers has been huge. An <a href=\"https:\/\/www.nytimes.com\/2020\/10\/01\/technology\/uber-wages-new-york.html\" target=\"_blank\" aria-label=\"Go to https:\/\/www.nytimes.com\/2020\/10\/01\/technology\/uber-wages-new-york.html\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\">analysis<\/a> found: \u201cDrivers in New York have made more per hour and for each trip on average, people haven\u2019t been significantly discouraged from riding with Uber or Lyft, and even the companies have most likely done better.\u201d<\/p>\n<p>Similarly, there\u2019s no evidence that the minimum wage for delivery workers is negatively affecting customers. Uber Eats, DoorDash, and Grubhub together average about 2.6 million deliveries a week, both before and after the rate increase.<\/p>\n<p>So for their next argument, the apps are blaming these marginal wage increases for inflation. You might have thought it was supply chain disruption, pandemic stimulus, or greedflation. But no, according to some, it\u2019s your deliverista or Uber driver\u2019s fault for demanding to be treated like a human being.<\/p>\n<p>It\u2019s a classic argument by some out-of-touch billionaires to blame the minimum wage for inflation. But it\u2019s baloney. <\/p>\n<p>As New York City comptroller, I analyze the city\u2019s economic landscape, and here\u2019s what the data says: a higher minimum wage for our lowest-paid workers raises many boats. That\u2019s what happened <a href=\"https:\/\/comptroller.nyc.gov\/newsroom\/newsletter\/new-york-by-the-numbers-monthly-economic-and-fiscal-outlook-no-69-september-12th-2022\/\" target=\"_blank\" aria-label=\"Go to https:\/\/comptroller.nyc.gov\/newsroom\/newsletter\/new-york-by-the-numbers-monthly-economic-and-fiscal-outlook-no-69-september-12th-2022\/\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\">when New York phased the minimum wage up to $15 an hour between 2013 and 2019<\/a>.<\/p>\n<p>Employment in sectors with a high percentage of minimum wage workers\u2014like fast food\u2014grew by 31% in New York City, much faster than the 20% in the average of 12 cities across the nation that did not raise their minimum wage at that time.<\/p>\n<p>Minimum wage household incomes grew by 50%, and the poverty rate among those households declined by 7%. As employment and incomes rose, so did the opening of new restaurants and hotels.<\/p>\n<p>Increasing the minimum wage to $15 gave hundreds of thousands of low-wage New Yorkers some economic security. Our 2018 law did the same for Uber drivers. And our new law is doing the same for deliveristas who were a vital lifeline during the pandemic and continue to provide an essential service.<\/p>\n<p>It\u2019s no surprise that the app companies would peddle ridiculous agreements blaming their own low-wage workers for inflation. They are out to extract every penny they can from the delivery workers whose labor they rely on to pad their bottom line: that\u2019s the gig business model. <a href=\"https:\/\/www.nytimes.com\/2024\/01\/28\/opinion\/rights-workers-economy-gig.html\" target=\"_blank\" aria-label=\"Go to https:\/\/www.nytimes.com\/2024\/01\/28\/opinion\/rights-workers-economy-gig.html\" rel=\"noopener\" class=\"sc-80b85506-0 ovBKL\">And they\u2019re coming for more and more of us<\/a>.<\/p>\n<p>But the data is clear: Enabling low-wage workers to earn enough to get by is good for the economy. Don\u2019t buy the divide-and-conquer nonsense that argues otherwise.\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>The workers who put food on our tables should be able to put food on theirs.<\/p>\n<h2 class=\"wp-block-heading\" id=\"block-a9c15eee-292b-44aa-9217-08f3279fafcf\">More must-read\u00a0commentary\u00a0published by\u00a0<em>Fortune<\/em>:<\/h2>\n<p><em>The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of\u00a0<\/em>Fortune<em>.<\/em><\/p>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/06\/07\/nyc-comptroller-food-delivery-apps-minimum-pay-inflation-baloney-labor-politics-tech\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Brad Lander is the New York City Comptroller. When New Yorkers order late-night Chinese food or a salad for lunch on their delivery apps,<\/p>\n","protected":false},"author":1,"featured_media":229440,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/229439"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=229439"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/229439\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/229440"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=229439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=229439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=229439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}