Surge in Delivery Job Demand: New York Sees +209% Increase Following Minimum Wage Hike

New York City increased the minimum pay rate for app food delivery workers to $17.96 – over x2.5 increase from what they’re making now.

As the news made headlines, the team at Whizz wanted to find out exactly how the news impacted the delivery job market.

We analyzed Google Search data and found that the news sparked soaring demand for delivery driver jobs in New York:

Searches for ‘Become a delivery driver’ have risen by +209% past week in New York;
Searches for ‘Doordash jobs’ are up +108% in the past week
Searches for ‘Grocery delivery jobs’ and ‘Food delivery jobs’ are up +174% and +120% respectively in the past day alone
Searches for ‘Uber eats jobs’ and ‘Delivery jobs New York’ +115% and +117% respectively in the past day

Mike Peregudov, co-founder and CEO of Whizz, commented:

“The food delivery workers work long, hard hours for every dollar and undoubtedly deserve more, so setting a new minimum wage works in favor of gig workers. However, there are certain risks associated with the consequences of those changes. This issue is a real balancing act that lawmakers must navigate carefully. Forcing retailers to pay too much could see costs passed on to consumers, with the nation's appetite for takeout already on the decline due to the rising cost of living. Fewer orders could decrease the delivery market's size, meaning fewer jobs, leaving the delivery workforce worse off.

On the flip side, this news has the potential to attract more delivery workers as the interest for food courier gigs continues to rise. This increased demand could lead to a decrease in expenses for delivery companies when it comes to recruiting new couriers, as they won't need to spend as much on hiring efforts. Moreover, with improved working conditions, the average duration of employment for delivery workers could see an increase. Previously, workers might have worked for 4-6 months, but now that duration could extend to 12 months. While the higher wages alone are likely to entice new workers to join the profession, our hope is that retailers will utilize the cost savings from reduced recruitment efforts to cover the increasing salary costs rather than passing the burden onto customers. As this will help gig workers earn more and, at the same time, allow the market to grow and become more sustainable.”

Why did the demand for delivery jobs increase after the minimum wage increase in New York?

The demand for delivery jobs in New York soared after the minimum wage increase due to several factors. Higher wages made delivery jobs more attractive to workers seeking employment, leading to a surge in the number of individuals entering the delivery workforce. Additionally, businesses may have increased their reliance on delivery services to accommodate a growing demand from consumers preferring home delivery options, further boosting job availability in this sector.

How does a minimum wage increase impact the economy and job market?

A minimum wage increase can have various impacts on the economy and job market. It can improve living standards for low-income workers, potentially increasing consumer spending and stimulating economic growth. However, it may also lead businesses to adjust their employment practices, such as reducing hours or increasing automation, to offset higher labor costs. The overall effect can vary depending on the specific economic context and how significantly the minimum wage is increased.

What are the challenges faced by delivery workers in urban areas like New York?

Delivery workers in urban areas like New York face several challenges, including navigating congested traffic, dealing with inclement weather conditions, and ensuring timely deliveries amidst busy schedules. Additionally, the physical demands of the job, such as carrying heavy loads and cycling or walking long distances, can be strenuous. Safety concerns, particularly for those working late hours, and the need for adequate health and accident insurance are also significant issues.

What role does technology play in the growing demand for delivery jobs?

Technology plays a crucial role in the growing demand for delivery jobs, largely through the proliferation of delivery apps and online ordering platforms. These technologies make it easier for consumers to place orders for food, groceries, and other goods, increasing demand for delivery services. For workers, technology provides more flexible job opportunities and the ability to work for multiple platforms, optimizing their earning potential. It also improves route planning and communication with customers, enhancing efficiency.