Food delivery giants in New York must now pay their workers a minimum hourly wage of $17.96, as per a recent court decision.

This ruling forces the delivery services to pay their couriers either a flat hourly rate or a per-delivery fee roughly equivalent to 50 cents per minute.

The companies had failed to persuade the court to block the minimum pay rule, which now clears the way for its enforcement.

In response to the decision, a DoorDash spokesperson said, "The sad truth is that the court has chosen to ignore the harmful consequences such a misguided minimum pay rule will cause. We will continue to explore all paths forward to ensure these minimum pay rules work for everyone who uses these platforms in New York City."

A Grubhub spokesperson similarly told Bloomberg that the company was "disappointed with the judge’s decision and are evaluating our next steps.”

As of the latest market close, Uber's shares were down 2%, while DoorDash and Grubhub saw a decline of 1.5% and 1.8%, respectively.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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