AGENCY TESTIMONY
Correction of Relay exemption and industry consolidation
0:11:40
·
72 sec
Commissioner Mayuga addresses the issue of the Relay exemption, which resulted from a misinterpretation of the minimum pay law in 2023. She explains how this exemption allows Relay to pay workers less than other apps and discusses recent industry consolidation.
- Relay currently pays workers $13.50 per hour, below the $19.56 required for other apps
- Relay was recently acquired by Wonder, a well-funded delivery app specializing in foodhalls
- Wonder is also in the process of acquiring Grubhub
- The exemption enables a major industry player to evade minimum pay protections, contrary to the council's original intention
Vilda Vera Mayuga
0:11:40
Finally, the bills will correct a 2023 misinterpretation of the minimum pay law, which resulted in an unfair exemption for relay delivery, a third party courier service.
0:11:52
This exemption allows Relay to pay thousands of its workers only 13.50 per hour, far below the 19.56 per hour required for other apps.
0:12:03
In April 2024, Relay was acquired by Wunder, a delivery app that specializes in delivery from footholds that it manages.
0:12:13
Wunder recently raised $700,000,000 in a round of funding value in the company at $3,500,000,000 Wonder also recently announced a deal to purchase Grubhub.
0:12:26
The judicially created exemption just for relay unjustly enables this major industry player to evade minimum pay protections for to workers' detriment.
0:12:37
It also violates council's original intention to cover all restaurant delivery workers classified as independent contractors with minimum pay protections and to include companies like Relay that do not offer a consumer facing platform.
