New Yorkers See 58% Rise in Food-Delivery Fees
- Uber Eats, DoorDash increased fees due to NYC minimum-pay law
- Delivery workers saw overall pay increase; tips went down
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New Yorkers have paid 58% more in food-delivery fees since before a minimum-wage law went into effect in late 2023, according to a city agency report, suggesting that restaurant-delivery services have passed on the bulk of these rising costs to customers.
While merchants also paid more fees to food-delivery services offered by Uber Technologies Inc., DoorDash Inc. and Just Eat Takeaway.com NV, the parent of Grubhub and Seamless, it is customers who are bearing the brunt of the impact. People who placed orders through such apps paid an average of $20.1 million a week in delivery fees during the first quarter of 2024 — a 58% increase from a year prior. By comparison, fees paid by participating restaurants increased 13% over the same period.