Uber, DoorDash lose effort to block NYC minimum wage increase for workers
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A delivery worker rests in July in New York City. Photo: Leonardo Munoz/VIEWpress
A New York judge ruled against Uber, DoorDash and Grubhub on Thursday after the food delivery companies tried to block New York City's new minimum pay law for app-based delivery workers.
Driving the news: In July, the three companies, along with the smaller delivery company, Relay, sued the city over the new pay standard of almost $18 an hour that was meant to go into effect that month.
- On Thursday, the judge, Nicholas Moyne, denied the petitions for Uber, DoorDash and Grubhub.
- However, Moyne granted a preliminary injunction for Relay — allowing the company to keep pushing against the new law.
- The wage increase will go into effect in October, and rise to almost $20 an hour in 2025.
What they're saying: "The City continues to lie to workers and the public. This law will put thousands of New Yorkers out of work and force the remaining couriers to compete against each other to deliver orders faster," Josh Gold, a spokesperson for Uber, said in a statement to Axios.
- A spokesperson for Grubhub told Axios the company is disappointed in the judge's decision to move forward and is evaluating its next legal steps, adding that the company will be forced to make changes that will have "adverse consequences" on those involved in the delivery process.
- "We remain confident in our legal position and firmly believe that the City's rule, while well-intentioned, is the result of a flawed rulemaking process that was not applied consistently to the food delivery industry," the Grubhub spokesperson said.
- DoorDash told Axios the decision is a "deeply disappointing outcome for delivery workers, merchants, and customers who look to our platform."
- Relay's CEO Alex Blum, in a statement to Axios, said the company was pleased that Moyne granted the preliminary injunction. Blum said its couriers "already earn more than $30 per hour, and today's ruling confirms what we have been saying all along - that our business model is unique and different."
The other side: Vilda Vera Mayuga, commissioner of the New York City Department of Consumer and Worker Protection, the agency that proposed the law, celebrated the decision.
- "We are glad the court made this decision, and we are grateful for the tireless advocacy of so many delivery workers who fought hard to make today a reality," Mayuga said in a statement.
- "Delivery workers, like all workers, deserve fair pay for their labor and to be able to support themselves and their loved ones," Mayuga added.
Go deeper: California raises minimum wage for fast food workers to $20 an hour
Editor's note: This story has been updated with statements from DoorDash and Relay.
