DoorDash, Uber, Grubhub Fall as NYC Passes Food-Delivery Rules
New York rules now require delivery services to pay workers once a week, offer payment options, and more.
www.thestreet.com
DoorDash, Uber, Grubhub Fall as NYC Passes Food-Delivery Rules
- Thread starter playahaitian
- Start date
www.thestreet.com
c'mon playa, lazy posting
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Sep 24, 2021 9:15 AM EDT
https://www.thestreet.com/investing/dash-uber-grubhub-shares-fall-on-new-nyc-regulations
DoorDash, Uber, Grubhub Fall as NYC Passes Food-Delivery Rules
New York rules now require delivery services to pay workers once a week, offer payment options, and more.
Food-delivery companies DoorDash (DASH) - Get DoorDash Report, Uber Eats (UBER) - Get Uber Technologies, Inc. Report, and Grubhub (GRUB) - Get Grubhub, Inc. Report fell after New York City passed legislation to tighten regulation on the industry and boost delivery workers' rights.
The measures require restaurants to grant couriers access to bathrooms. They set minimum per-trip payments as well as a guarantee that couriers receive full tips. And they allow the workers to set limits on their routes, reports say.
The apps will also be required to pay their delivery people once a week. The companies must offer payment options for workers who don't have bank accounts.
And the services are prohibited from charging fees to workers to receive their earnings, Bloomberg reported.
“Delivery workers have worked tirelessly throughout this pandemic risking their lives, their livelihoods,” said Councilwoman Carlina Rivera, a prime sponsor of the bills, according to Bloomberg.
At last check Grubhub shares were down 3.8% to $15.63 while Uber shares were off 1.3% to $44.90 and DoorDash shares were down 1.3% to $214.27.
Some 65,000 food-delivery drivers work in New York. They were named essential workers during the height of the Covid-19 pandemic.
Classified as independent contractors, the workers don't have access to minimum wage or overtime benefits.
Last week, DoorDash sued New York City over a new law requiring the food-delivery companies to share customer data with restaurants. DoorDash argued that the law violates customer privacy.
That lawsuit, filed in federal court in Manhattan, was the second brought by the company in less than a week.
The prior week, Uber and Grubhub joined the company in filing a lawsuit against the city over a law that would license them and cap the commissions they can charge restaurants.
The companies petitioned the federal court in New York to issue an injunction preventing the city from enforcing the fee cap. The New York City Council approved the cap in August.
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Sep 24, 2021 9:15 AM EDT
https://www.thestreet.com/investing/dash-uber-grubhub-shares-fall-on-new-nyc-regulations
DoorDash, Uber, Grubhub Fall as NYC Passes Food-Delivery Rules
New York rules now require delivery services to pay workers once a week, offer payment options, and more.
Food-delivery companies DoorDash (DASH) - Get DoorDash Report, Uber Eats (UBER) - Get Uber Technologies, Inc. Report, and Grubhub (GRUB) - Get Grubhub, Inc. Report fell after New York City passed legislation to tighten regulation on the industry and boost delivery workers' rights.
The measures require restaurants to grant couriers access to bathrooms. They set minimum per-trip payments as well as a guarantee that couriers receive full tips. And they allow the workers to set limits on their routes, reports say.
The apps will also be required to pay their delivery people once a week. The companies must offer payment options for workers who don't have bank accounts.
And the services are prohibited from charging fees to workers to receive their earnings, Bloomberg reported.
“Delivery workers have worked tirelessly throughout this pandemic risking their lives, their livelihoods,” said Councilwoman Carlina Rivera, a prime sponsor of the bills, according to Bloomberg.
At last check Grubhub shares were down 3.8% to $15.63 while Uber shares were off 1.3% to $44.90 and DoorDash shares were down 1.3% to $214.27.
Some 65,000 food-delivery drivers work in New York. They were named essential workers during the height of the Covid-19 pandemic.
Classified as independent contractors, the workers don't have access to minimum wage or overtime benefits.
Last week, DoorDash sued New York City over a new law requiring the food-delivery companies to share customer data with restaurants. DoorDash argued that the law violates customer privacy.
That lawsuit, filed in federal court in Manhattan, was the second brought by the company in less than a week.
The prior week, Uber and Grubhub joined the company in filing a lawsuit against the city over a law that would license them and cap the commissions they can charge restaurants.
The companies petitioned the federal court in New York to issue an injunction preventing the city from enforcing the fee cap. The New York City Council approved the cap in August.
Good move
That's a great move. People talk shit about Deblasio. Like the two previous Mayors weren't elitist assholes who fucked up the city.
It’s been known that Uber eats gives you more visibility but takes a percentage out of each order.. the question has always been is it worth it to the biz? Now all these new additional fees and programs definitely is some next level bs.. the thing is , is there other options and what are their fees and visibility in comparison.. see in america we have DoorDash, grub hub, etc as alternatives.. don’t know their rates but biz have to look in to them or better promote their product online to get customers through the door
Forget the fees.
The bigger problem is these companies pay their couriers shit. So if the customer doesn't tip enough that order might not get picked up for an hour, if at all. And the restaurant has no control over it.
People heard about the courier situation but people weren’t familiar with the restaurant side.. places like nyc push for an hourly salary+ tips.. idk how they do in Cali but that salary push makes a difference
California has prop 22 which guarantees gig workers make minimum wage plus 20% during "active time." In San Francisco that works out to $22.40/hr for the time you spend picking up an order or dropping it off.
It's been a disaster. Companies used it as an excuse to lower order payouts. Then people started working from home which lowered demand. I went from getting an order ping every 30 seconds to every 15 minutes.
Customers realized they no longer needed to pre-tip (aka bribe) couriers to get priority service so tips shrank as well. I went from earning $100-$125 in a typical 4-hour shift down to $50- $75.
I quit delivering in 2022. The money just wasn't worth it anymore.
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