Uber, DoorDash Adapt to NY's Wage Hike For Gig Workers: What's Next for Delivery Drivers?
Portfolio Pulse from Anusuya Lahiri
Uber Technologies, Inc (UBER) and DoorDash Inc (DASH) have updated their apps in response to New York's new minimum wage mandate for delivery drivers, which sets a base rate of $17.96 per hour. The changes include moving the tipping prompt to after order placement and implementing additional fees to manage costs. Drivers are concerned about the long-term impact on earnings, as tips now make up a smaller percentage of their income. Uber has added a $2 delivery fee, and DoorDash plans to increase prices. Despite higher wages, drivers find the new minimum wage modest compared to living costs in New York. UBER shares traded lower by 0.73% at $61.67.
December 20, 2023 | 3:24 pm
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NEGATIVE IMPACT
DoorDash has made app changes due to NY's wage mandate and plans to increase prices in the coming months.
DoorDash's decision to adjust the tipping prompt and plan for price increases could lead to customer dissatisfaction and reduced competitiveness, potentially impacting revenue and stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Uber has updated its app and added a $2 delivery fee in response to NY's new minimum wage for drivers. Shares traded lower by 0.73%.
The app changes and additional delivery fee may increase operational costs for Uber, which could negatively impact profit margins. The stock price dip indicates a negative market reaction in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80