DoorDash is raising delivery fees for Big Apple customers and restaurants alike to offset the cost of a recent minimum wage increase for delivery workers, The Post has learned.
DoorDash will increase its commission rates starting Wednesday, a month after food delivery apps were required by law to pay employees a higher minimum wage of at least $17.96 an hour, according to a memo obtained by the newspaper. The restaurant has been notified.
The memo also warns that due to the “extreme minimum wage,” customer fees will rise “to offset cost increases.”
“We've been clear from the beginning that we would implement a fee when the new minimum wage was first implemented,” DoorDash spokesperson Eli Sheinholz told The Post in an email. .
He added that consumer fee increases would be introduced “in the coming weeks” and declined to comment on the size of the fee increases.
DoorDash said in the memo that restaurants can expect to pay up to 23% in fees for delivery orders and up to 8% for pickup orders. This is the maximum amount allowed under New York City's highly contested fee cap regulations, which were enacted during the pandemic.
Previously, DoorDash charged 20% and 5% for delivery and pickup, respectively.
Delivery apps like Uber Eats and Grubhub have also warned of plans to raise prices since the minimum wage law was passed last summer.
“As we try to adapt to the city's ill-conceived rules, all options are on the table, including changes that could negatively impact small restaurants,” said Josh Gold, an Uber Eats spokesperson. '' he told the Post.
To ease customer backlash, Uber has already added a $2 “New York delivery fee” to orders and reminded customers that “tipping remains optional,” according to receipts.
DoorDash and UberEats both moved post-checkout tip options in December.
Some restaurant owners said they expected delivery apps to raise prices.
“I'm more worried about the fee cap being lifted completely,” Andrew Schnipper, co-owner of burger joint Schnipper's, told the Post. “The fee cap has been very helpful to us over the last few years.”
In 2021, Grubhub, DoorDash, and Uber Eats seek to repeal a rule that limits the fees they can charge restaurants to 23% of an order, including a 15% delivery fee, 5% marketing fee, and 3% credit card processing fee. sued New York City. .
That lawsuit is ongoing.
DoorDash said it currently pays its delivery drivers $29.93 per hour, or 50 cents per “active minute,” as per its regulations.
Under the new law, apps will now be able to choose between paying $17.96 per hour or 50 cents per minute, and only if the latter equals $29.93 per hour will the delivery person accept the job. This includes paying for the time from acceptance to delivery.
