Demand for delivery jobs soared +209% in New York after min. wage increase

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.”