""We've partnered with Relay Delivery, a third-party delivery as a service company, in New York City to outsource some of our fulfillment responsibilities to them. This partnership arises primarily to stem elevated driver pay costs in NYC, which have more than doubled since the new driver pay law was introduced.""
""Since December 2023, New York City's landmark minimum wage law has required app delivery companies to pay workers a guaranteed hourly rate that takes into account the cost associated with being a private contractor.""
""Relay's business model differed enough for a judge to grant an injunction that allowed the company to ignore the law until it dropped the suit in June 2025.""
Grubhub subcontracted deliveries to Relay to circumvent New York City's minimum wage laws, which increased driver pay. Internal documents reveal that this partnership began in January 2024, with estimates suggesting 20 to 30 percent of Grubhub orders were outsourced. Grubhub's internal communications indicated that the partnership aimed to reduce elevated driver pay costs, which had more than doubled since the introduction of the new law. Relay's business model allowed it to pay contractors less than the mandated minimum wage, creating a loophole for Grubhub.
Read at Streetsblog New York City
Unable to calculate read time
Collection
[
|
...
]