Relay Unlocked Profitable Delivery For 3k NYC Restaurants, Now Its Existence Is At Risk

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8 min

Relay Unlocked Profitable Delivery For 3k NYC Restaurants, Now Its Existence Is At Risk
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In 2021, NYC’s Department of Consumer and Worker Protection (DCWP) began investigating the pay and working conditions of third-party food delivery workers in order to establish a fair minimum wage on their behalf. The 37-page study found that the average NYC food delivery courier earns an average $14.18 per hour with tips, and $7.09 without. When accounting for hourly expenses, that figure lowers by ~$3, about $12k in annualized net earnings, 37% lower than the poverty line for a single adult or 71% below the near thresholds for a four-person household. The Department estimated that there are about 123k couriers who performed deliveries on behalf of deliveries in Q4 β€˜21, about half of which still remain. It also estimated that 92% of NYC restaurants offer delivery, which represents ~27% of their sales on average. After two sets of proposed rules that were updated to adjust for β€œmulti-apping,” the $17.96/hr minimum wage law was temporarily blocked by a NY State Supreme Court judge just a week before it was set to go into effect on July 12. Furthermore the DCWP lumped third-party delivery marketplaces Uber, DoorDash, and Grubhub alongside an under-the-radar startup called Relay that offers restaurants the ability to fulfill their own orders using its network of bike couriers for a flat fee of ~$5-7 per order. Today, Relay is in court to fight the move that seeks to threaten its very existence.

Source: Relay

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