New York requires food delivery workers to earn $87 an hour

New York requires food delivery workers to earn $87 an hour

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Companies will need to pay a fixed amount to more than 65 food delivery workers and the impact could reach Brazil, which is heading towards legislation

The town of New York went on to make a demand that could impact food delivery people around the world. As of July 2023, delivery apps like Uber e GrubHub will have to pay US$ 17,96 (R$ 87,20 in direct conversion) per hour for all the people who work carrying orders from one place to another.

In Brazil, there is still no requirement that all people who work for companies like iFood e Rappibut who lives in New York there should also be another increase by 2025. See what was approved on the subject.

Fixed salary for food delivery workers

The delivery professionals who work for these platforms do not have a fixed salary, and the work is paid after a whole delivery routine. But, at least in New York, that is about to change: a new law will require you to pay $17,96 starting July 12, 2023.

New york food delivery boy making deliveries
Payments must begin to be made by July (Photo: Reproduction / Shutterstock)

The change was suggested by the Department of Consumer and Worker Protection (DWCP) with the justification that it is necessary for those who work with delivery by application to earn above US$ 15, value currently established in the city per hour worked. This addition to the payment is intended to cover the payment of taxes and other expenses that end up being taken out of the couriers' own pockets.

Another change announced by the city of New York is that, by 2025, companies like Uber e GrubHub will have to pay US$ 19,96 per hour for those who have a registration on the platform, with adjustments made as inflation advances in the country.

Delivery companies were against the change

The $17,96 hourly rate demanded by New York City is well below what DWCP was asking for ($23,82) at the end of 2022, but it is still higher than the $7,09 average .65 of what the more than XNUMX thousand food delivery people earn when working daily in one of the busiest cities in the world.

New york food delivery boy making deliveries
Uber Eats thinks the law should not have been passed (Photo: Reproduction / Freepik)

spokespersons for Uber e GrubHub were against the approval of the law, justifying that this is a way for the city to try to guarantee earnings of US$ 30 per hour. They claim that the city also wants to use the apps as a form of funding.

The city is lying to the delivery men — they want apps to fund the $30 an hour wage, eliminating jobs and reducing tips while forcing the remaining workers to deliver orders faster.

Josh Gold, spokesperson for Uber

While we believe that New York City means well, we are disappointed in the DCWP's final rule, which will have serious adverse consequences for couriers in New York City. Sadly, New York City chose not to partner with the industry on a solution that would have benefited all aspects of the gig economy.

Spokesperson for GrubHub

The new law will be applied regardless of the opinions of the companies directly involved. Experts from organizations linked to the food delivery class celebrated the decision after many years of struggle for these people to earn a little more and achieve greater purchasing power.

We welcome this salary increase that many of our members have organized for, so that this city begins to properly value the work of couriers, their experiences and risks. And we remain vigilant to ensure that delivery app companies don't maneuver to undermine workers by cutting hours or orders or exploiting other loopholes.

Kazi Fouzia, Organizing Director at Desis Rising Up & Moving (DRUM)

We are proud to have secured this historic victory for couriers. New York City's 65.000+ app-based food delivery drivers will finally get the pay raise they deserve, allowing them to better support themselves and their families after being denied a living wage for years.

Ligia Guallpa, executive director of the Workers' Justice Project

How is legislation made in Brazil?

Brazil is still advancing slowly on this subject. One of President Lula's promises during his election campaign is precisely the creation of a law that covers this category, but everything remains on paper. The last update on the subject came in February 2023, when Lula managed to increase the minimum wage and, after the Carnival of the same year, debates with representatives of the category to discuss what needs to be done would begin.

Photo of food delivery people stopped in transit in the city of são paulo
President Lula promised legislation for food delivery drivers (Photo: Reproduction/See)

Then the bill needs to be sent to the Congress National for the approval process to take place. Unions and companies that administer the applications also need to participate in the development process of all procedures so that everything is approved more easily.

However, the Government knows that the discussion with companies like iFood e Rappi it can be laborious and they may even be against approval. DSince March 2022, Uber has stopped serving restaurants and ended the Uber Eats service in Brazil.

Photo of food delivery people stopped in transit in the city of são paulo
Many food delivery people still earn only for the deliveries they make (Photo: Reproduction/See)

In 2021, a Bill was approved to support this category: in the case of accidents or infection due to COVID-19, companies such as iFood, Loggi, Rappi and Uber Eats must pay insurance of BRL 2. These same companies must offer food and drinking water between deliveries. The fine for non-compliance with the law is BRL 5, paid to the food delivery person.

How much do iFood and Rappi couriers earn?

who works as iFood partner courier has its earnings calculated according to the route between the person who placed the order and the restaurant. The most famous delivery platform in Brazil pays at least BRL 6,00 for each delivery and for each kilometer, the courier earns at least BRL 1,50. It is possible to earn an additional fee if starting from 5 km away. In addition to special promotions, other factors can influence pay for couriers:

  • The number of orders, if there is a grouping of orders;
  • The profile of the city;
  • The time and day of the week;
  • The delivery method (car, motorcycle, scooter or bicycle) chosen by the employee.

Those who work at iFood earn per day and, after all deliveries are made, a bank deposit is made into the account registered in the application. Tips are passed on without any charge by the platform, and can be R$ 2, R$ 5 or R$ 10 after a delivery is completed. 80% of the average earnings of a person who works 120 hours a month (4 hours a month), according to the platform, is R$1.300.

Ifood and rappi logos
iFood and Rappi pay a fixed amount for each delivery made (Photo: Reproduction/Blog Consumer)

already talking about the Rappi, the minimum earnings vary from R$ 6 to R$ 8 for each delivery made. The company points out that people earn for the time they spend online and the payment increases according to the hours of high demand, such as lunch, dinner and weekends. This video below shows that couriers who work from Monday to Friday can earn up to BRL 1 per week.

Payments can be made daily, weekly or fortnightly, also made via bank transfer to the account registered in the courier's profile. The deadline for the money to be debited from the account is 2 business days. You can check the information about this in the Rappi's official page about the subject .

Do you believe that, just like in New York, companies operating in Brazil also need to pay a fixed amount to couriers? Tell us us Comment!

See also other features

How to be a free market delivery man?

With information: The Verge l Engadget

reviewed by Glaucon Vital in 13 / 6 / 23.


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