DoorDash increases NYC delivery fees following new minimum wage rules

DoorDash customers in NYC will see a new fee charged to their account when they purchase food for delivery through the app. The company responded to the city by charging users a $2 surcharge for delivery in NYC new minimum wage lawconfirmed the spokesperson Business Insider. He warned In December, users said the new minimum fee rate, which it called “ill-conceived” and “extreme,” would have “significant consequences” for everyone using its platform and would be “binding.” [it] To increase fees for orders.” Other major cities that have implemented minimum payment rates for app-based delivery will also be affected. Seattle customers, for example, were recently hit with new fees ranging from 10 cents to $3.40 per order.

Under the new rules, services like Uber, DoorDash and Grubhub will have to pay workers at least $18 an hour. DoorDash has chosen to pay drivers only $29.93 per active hour, which means they don’t get paid for the time they spend waiting for orders to arrive. When the company publishes its report A response to Seattle’s new regulationsit said it would reduce the tip amount offered for each purchase “to better balance the impact of these new costs and provide the best experience for consumers.”

Customers can still tip as much as they want, but they may be less inclined to tip like they used to because of the extra fees. That’s one possible direct impact on drivers, as DoorDash notes in its announcement that they receive 100 percent of customer tips. This has not always been the case. Back in 2019, news broke the news of the company pocket tips experience and to use that money to pay drivers guaranteed fees that should come from DoorDash. Food delivery service only presented a new earning and tipping policy that ensures drivers receive their tips shortly after these reports are released.

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