DoorDash has announced operational changes to its platform in New York City (NYC), US to align with the city’s increased minimum pay level for app-based delivery workers.
Introduced in June 2023, the city’s rules set minimum pay at $19.96 per hour, a significant rise from the previous $7.09 per hour.
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The phased implementation of the new pay rates began with $17.96 per hour from 12 July 2023 and will incrementally rise to $18.96 per hour from 1 April 2024 and $19.96 per hour from 1 April 2025.
Delivery platforms in NYC will have two payment options for delivery workers: the Standard Method and the Alternative Method.
The Standard Method requires payments to meet or exceed the minimum pay rate based on individual and total worker trip times during the week, while the Alternative Method focuses on paying for trip time at no less than the alternative minimum pay rate, calculated as 60% of that rate.
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DoorDash, having criticised both options as “deeply flawed”, has been using the Alternative Method, which mandates almost double the minimum wage for delivery time.
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By GlobalDataBut the company has found this unsustainable and has decided to switch to the Standard Method from 4 March 2024.
This means “dashers” will earn $17.96 per hour of active time before tips, with the rate set to increase to $19.56 on 1 April in accordance with city guidelines.
Dashers will continue to have their earnings reviewed weekly, with any additional pay adjustments reflected in their app.
DoorDash is launching the Dasher Rewards programme to support high-performing dashers who accept and complete most of their tasks.
The programme offers benefits such as early schedule access, priority road access and potential weekly bonus rewards.
DoorDash stated: “We know dashers highly value flexibility, and we are disappointed that these changes will result in less flexibility and fewer earning opportunities for many… Simply put, many Dashers will no longer be able to work whenever they like and end up earning less money as a result.”
