Food Delivery Apps Are Booming. Their Workers Are Often Struggling
(NYT) - Even as the food delivery companies have seen sales surge, the workers’ pay has remained erratic. Because the drivers are independent workers, they are not entitled to a minimum wage, overtime or any other benefits, like health insurance.
When the pandemic lockdown led the Manhattan restaurant where Natanael Evangelista was an employee to close for good, he quickly shifted to working for food delivery apps. He had few options. He was undocumented, did not speak much English and needed money badly. He owed months’ worth of rent, and his family in Mexico needed help.
But he was worried. Two of his cousins were also delivery workers — one had contracted the coronavirus and fallen into a coma, while the other had been assaulted and had his bike stolen.
With hundreds of thousands of New Yorkers out of work and the city’s unemployment rate at 13.2 percent, many desperate people have turned to working for food delivery apps like DoorDash, Uber Eats and Grubhub, which have seen huge demand from customers who are working from home.
While delivery drivers have been essential to feeding New Yorkers and keeping them safe, their working conditions, already precarious before the pandemic, have gotten worse.
“Delivery work is a dangerous business,” Mr. Evangelista, 27, said. “It’s very worrying.”
Some workers also complain that many restaurants deny them the use of their bathroom out of health concerns, forcing them to carry plastic bottles.
Even as the food delivery companies have seen sales surge, the workers’ pay has remained erratic. Because the drivers are independent workers, they are not entitled to a minimum wage, overtime or any other benefits, like health insurance. Undocumented immigrants, who are not eligible for unemployment or federal coronavirus assistance, make up the bulk of the work force in New York.
The added competition from the surge in new workers has compounded the financial challenges. While there are no precise figures, advocacy groups estimate that there were roughly 50,000 delivery workers before the pandemic — a number they say has grown exponentially. Uber alone said it had added 36,000 couriers in New York since March.
DoorDash and Uber said they had provided extra help to delivery drivers during the pandemic, including offering sick pay to those who had gotten the virus. DoorDash, the nation’s largest food delivery app, said it provided masks, gloves, hand sanitizer and wipes to drivers, as well as access to low-cost telemedicine appointments.
“Since the beginning of the Covid-19 crisis, we have taken action to protect and support Dashers who are on the front lines,” Becky Sosnov, a spokeswoman for DoorDash, said.
DoorDash said it had changed its pay model, which came under fire last year after that tips were being used to subsidize its payments to workers. The company recently with prosecutors in Washington, D.C., after being accused of misleading consumers over how it tipped its workers.
At Uber Eats, “delivery people receive 100 percent of all tips,” Meghan Casserly, a spokeswoman for the company, said. She said Uber Eats has provided 10 million safety supplies — masks, wipes and hand sanitizer — to workers in the United States and Canada.
But workers interviewed for this article who drive for other food delivery apps said they still sometimes do not receive all of their tips.
Some food delivery apps say drivers can earn as much as $22 per hour, including tips, though many drivers said they never earned anywhere close to that much.
At a park on Manhattan’s Lower East Side, Edgar Usac, a delivery driver, was waiting for orders on a recent Saturday. After four hours, he said, he had made $11. Another driver, Elias Pacheco, 35, said: “I have made $32 so far. I started at 10:30 this morning.” It was 5 p.m.
Drivers for food delivery apps are typically paid per delivery depending on the estimated duration and distance of a trip, plus tips. The work can be convenient for people supplementing a main source of income, but a struggle for those who depend on it as a primary job, advocates for the workers said.
“The pandemic really exacerbated the challenges that these workers are facing and that they regularly face,” said Maria Figueroa, director of labor and policy research for the Cornell University Worker Institute. “In addition to getting low pay, they don’t get enough work from each of the applications, so they have to work for at least three or four of them, and there are more workers than the market can hold.”
Treating the drivers as essentially freelancers, Ms. Figueroa said, has allowed the food delivery apps to offset what have been thin profit margins by not having to pay for health insurance, retirement benefits or workers’ compensation for injuries on the job.
On good days, Mr. Evangelista makes roughly $100 after working five to six hours, but other days he can make as little as $42. In his old job, working in the kitchen of a restaurant in Midtown Manhattan, he made about $15 an hour, he said.
Workers said food delivery apps do not always give them all of their tips, or sometimes deduct them from their pay.
Gustavo Ajche, 37, a construction worker who turned to food delivery apps when he lost his job during New York’s lockdown in the spring, said he was blocked by one app, Relay, after he complained that he had not received his tips. “They don’t care,’’ he said.
In one case, a $10 tip he had received from a customer appeared on the restaurant receipt, which he showed to a reporter — but not on his Relay app or in his bank account.
Alex Blum, the chief executive of Relay, a small company that delivers mainly in New York City, attributed the error to the restaurant’s failure to manually enter the tip into the Relay system.
Mr. Blum said Relay paid its delivery workers $11.80 an hour, the city’s minimum wage, even in between deliveries. But the company has been the target of numerous from workers who claim that they are not paid fairly for the hours they work.