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Uber, Grubhub and DoorDash must pay NYC delivery workers an $18 minimum wage
(www.engadget.com)
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this post was submitted on 29 Sep 2023
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I don't see why that's a problem.
Normally I wouldn't give a shit. But for these P2P businesses the unit economics for the business to be profitable requires passing on that expense to the end customer.
I'm not going to pay an extra $10+ dollars or whatever for my meal when I'm already tipping, paying tax, and service charge.
So I'm saying while it sounds awesome to pay people more, in this case it will just cause these services to go away.
Everyone down voted me like I'm defending the companies, but that's not my intention. It's more that these services as they are won't exist, so everyone loses. The employees lose the job and their customers lose the service. The company goes out of business too but that's not the issue I care about. We will effectively all lose delivery services except those willing to pay a lot for it, which stifles demand and makes the problem worse.
Anyway... I'm totally willing to hear counterarguments and certainly on the side of the workers, but the knee-jerk downvote and talk about how everyone needs a living wage isn't helping dive into the nuance of how these businesses operate and make money and what impact this decision will have on the business model.
Life was just fine before those services you’re worried about losing. They aren’t necessary.
I can say that too, and I agree with it. It's easy to say that.
Meanwhile the folks who relied on it as some part time extra cash just lost that option.