https://www.wsj.com/business/hospitality/delivery-drivers-got-higher-wages-now-theyre-getting-fewer-orders-d2e416c0?mod=mhp
Prog states and cities imposed minimum wages on Uber eats delivery drivers and the consequences are exactly what you'd expect: cratering usage, higher prices, loss of schedule flexibility (the biggest allure of driving for Uber in the first place), and lots of denial from progressives.
It's almost impossible to pick quotes from this very long article since every one is a beach slap, but I'll give it a try.
New York City now requires that the companies pay couriers at least $19.56 per hour before tips, up from an average of $5.39 per hour before its rules went into effect in December... orders in Seattle fell 45% last quarter from the same period a year earlier after the company imposed a $4.99 fee on each order to cover the city's new pay requirements. Demand also cooled in New York City, Uber and DoorDash said.
Seattle-based researcher Ro Singh was hooked on ordering in several times a week until the city adopted its pay measure in January... He started picking up the food himself. "It's like double the price to order a $20 burrito now" compared with the pickup price, he said. "This is insane."
The new rules in Seattle and New York City apply to food-delivery couriersride-hailing drivers aren't covered. Uber and DoorDash say they can afford to pay a limited number of workers under the new laws. To make the math work in New York City, Uber says it has to slot delivery drivers into shifts. The move has angered some drivers who want the flexibility to work when they want.
Uber Chief Executive Dara Khosrowshahi said the company has had to cut 25% of the delivery drivers who previously worked for the app in New York City. "So far, regulation has definitely hurt the people that it's supposed to protect," Khosrowshahi said last month on a call with analysts.
New York authorities say the new rules have been good for the market. "The minimum pay rate is working and has been very successful in raising the wages of NYC's app-based restaurant delivery workers," the city's Department of Consumer and Worker Protection said in a statement.
New York City driver Jagat Pun, who mainly delivers for Uber Eats, said the app's shift system has slashed his working hours by more than half. His weekly earnings are down about 60%, and he can't choose when he works... Shuai Zhang, the owner of Poprice, an Asian street-food restaurant in New York City, says his delivery sales are a third of what they were before the changes. Drivers who once picked up from his restaurant are now asking him for jobs.
Fewer workers delivering for the apps means it takes longer to pick up orders. Customers are complaining about deliveries arriving cold and soggy, Zhang said.
DoorDash said Seattle drivers have to wait between orders three times longer than before. Uber said 30% of its active delivery drivers in the city have quit its app.
Seattle driver Gary Lardizabal said he makes less money now despite working more hours. Breakfast and afternoon-snack delivery orders have disappeared. Smaller deliveries don't make sense because of the new $4.99 fee, he said.
Prog states and cities imposed minimum wages on Uber eats delivery drivers and the consequences are exactly what you'd expect: cratering usage, higher prices, loss of schedule flexibility (the biggest allure of driving for Uber in the first place), and lots of denial from progressives.
It's almost impossible to pick quotes from this very long article since every one is a beach slap, but I'll give it a try.
New York City now requires that the companies pay couriers at least $19.56 per hour before tips, up from an average of $5.39 per hour before its rules went into effect in December... orders in Seattle fell 45% last quarter from the same period a year earlier after the company imposed a $4.99 fee on each order to cover the city's new pay requirements. Demand also cooled in New York City, Uber and DoorDash said.
Seattle-based researcher Ro Singh was hooked on ordering in several times a week until the city adopted its pay measure in January... He started picking up the food himself. "It's like double the price to order a $20 burrito now" compared with the pickup price, he said. "This is insane."
The new rules in Seattle and New York City apply to food-delivery couriersride-hailing drivers aren't covered. Uber and DoorDash say they can afford to pay a limited number of workers under the new laws. To make the math work in New York City, Uber says it has to slot delivery drivers into shifts. The move has angered some drivers who want the flexibility to work when they want.
Uber Chief Executive Dara Khosrowshahi said the company has had to cut 25% of the delivery drivers who previously worked for the app in New York City. "So far, regulation has definitely hurt the people that it's supposed to protect," Khosrowshahi said last month on a call with analysts.
New York authorities say the new rules have been good for the market. "The minimum pay rate is working and has been very successful in raising the wages of NYC's app-based restaurant delivery workers," the city's Department of Consumer and Worker Protection said in a statement.
New York City driver Jagat Pun, who mainly delivers for Uber Eats, said the app's shift system has slashed his working hours by more than half. His weekly earnings are down about 60%, and he can't choose when he works... Shuai Zhang, the owner of Poprice, an Asian street-food restaurant in New York City, says his delivery sales are a third of what they were before the changes. Drivers who once picked up from his restaurant are now asking him for jobs.
Fewer workers delivering for the apps means it takes longer to pick up orders. Customers are complaining about deliveries arriving cold and soggy, Zhang said.
DoorDash said Seattle drivers have to wait between orders three times longer than before. Uber said 30% of its active delivery drivers in the city have quit its app.
Seattle driver Gary Lardizabal said he makes less money now despite working more hours. Breakfast and afternoon-snack delivery orders have disappeared. Smaller deliveries don't make sense because of the new $4.99 fee, he said.