April 13, 2024
After the minimum wage law takes effect, Uber makes a tough decision

After the minimum wage law takes effect, Uber makes a tough decision

As New York City Hall tries to put a new minimum wage law into effect with app drivers, delivery pads are challenging the new measure in court. With the new law, Uber Eats, DoorDash and Grubhub decided to sue the New York government. According to CNN International, the companies are claiming that the new law may harm workers rather than help them.

Read more: Those working on Uber, iFood, and other apps should know this big news

Uber is taking action

While DoorDah and Grubhub sued jointly in New York State Supreme Court, Uber sued on its own. According to the statement issued to the press by the municipality, couriers delivery, whether by bike or motorbike, you earn an average of around $7.09 (S$34.54) per hour. With the law, that value will increase to $17.96 (R$87.51) from July 12th. In addition, the aim of this measure is to increase this value further, bringing it to $20 (R$97.45) in April 2025.

Greater economic stability

According to figures released by the local government, there are more than 60,000 couriers currently working in the city. In a statement, New York City Mayor Eric Adams said, “The rule provides workers and their families with greater economic stability. In addition, it will help keep our city’s legendary restaurant industry thriving.”

“Our postmen have been constantly delivering to us – now, we’re giving them delivery,” the mayor concludes in his statement. Since it promises to satisfy the workers, it did not please the delivery operators very much.

‘Immediate and irreparable damage’

In contrast to modernity, delivery companies have joined forces to oppose the new government decision. According to the defences, the new law could harm the performance of platforms, restaurants and workers as well as consumers. Thus, Uber’s senior director of public affairs, Josh Gold, said that “the law must be stopped before it harms the restaurants, consumers, and delivery people it intends to protect.”

Thus, Uber is asking the court to issue a temporary restraining order and also an injunction against the new measure. According to the company, the rule makes apps Should reduce the possible delivery radius. He argues the suit: “If it goes into effect, it will cause immediate and irreparable harm.”

Finally, DoorDash told CNN International that while the law is “bad policy,” the company is not opposed to creating a minimum wage for employees. couriers. “We will not stand by and let the harmful effects of this earnings pattern on the customers, merchants, and delivery people of NYC, whom it is meant to support, go unnoticed,” DoorDash said.