PUBLIC TESTIMONY
Testimony by Ruth Whittaker, Director of Civic Innovation Policy at Chamber of Progress
0:54:58
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141 sec
Ruth Whittaker from the Chamber of Progress expressed concerns about implementing minimum pay standards for all categories of delivery workers without considering potential negative consequences. She highlighted issues such as increased consumer prices, reduced earning opportunities for drivers, and threats to worker flexibility.
- After implementing minimum pay standards for food delivery workers, consumer fees increased by an average of 46% per order.
- Expanding these standards could harm food-insecure New Yorkers by increasing grocery prices.
- The minimum pay standards for food delivery workers resulted in fewer orders, lower tips, and limited schedules, potentially reducing overall earnings for drivers.
Ruth Whittaker
0:54:58
Good afternoon, chairman and then members of the committee.
0:55:01
My name is Ruth Whitaker, and I'm the director of civic innovation policy at Chamber of Progress, a tech industry coalition promoting technology's progressive future and ensuring that all Americans benefit from technological leaps.
0:55:12
Our partners include many app based delivery companies, but our partners do not have a vote or veto over our positions.
0:55:18
I'm here today to raise concerns about proposals to implement minimum pay standards for all categories of delivery workers without properly considering the downstream consequences.
0:55:27
After implementing minimum pay standards for food delivery workers last year, prices increased for consumers and earning opportunities decreased for drivers.
0:55:35
Expanding these standards to cover more drivers without a full understanding of their impact risks undermining the goals of these proposals.
0:55:42
Minimum pay standards typically raise prices for consumers.
0:55:46
After the city implemented its minimum pay standards for food delivery drivers last year, consumer fees increased by an average of 46% per order.
0:55:53
Expanding the existing rules to include grocery delivery would likely have similar effects.
0:55:58
Increasing the prices of groceries would be particularly harmful for the estimated 14.6% of New Yorkers who are food insecure or those living in food swamps without access to fresh, healthy food.
0:56:09
For these communities, food and grocery deliveries can mean access to a wider variety of healthier food options.
0:56:15
Minimum pay standards also typically result in reduced earning opportunities for workers.
0:56:20
Higher prices typically resulted in fewer orders and lower tips which declined by 60% for food delivery drivers since December.
0:56:27
The minimum pay standards for food delivery workers also resulted in food platforms instituting schedules to align driver supply with high demand periods.
0:56:35
The combination of fewer orders and limited schedules can limit earning opportunities for drivers.
0:56:40
One driver reported a 60% decrease in earnings since the pay standards went into effect.
0:56:45
Nationwide, 69% of workers at app based work helped them to make money in an emergency situation and 63% said the income from app based work allowed them to cover rising costs.
0:56:56
Minimum pay standards also threaten the flexibility that workers value.
0:57:00
App based workers consistently report that the ability to control their own schedules is one of the most valuable benefits of app based work.
0:57:06
The city's analysis of minimum pay Okay.
Julie Menin
0:57:08
I'm gonna ask you to please wrap up.
0:57:09
Thank you.
Ruth Whittaker
0:57:11
Our concern is that, the flexibility will be eliminated, which is one of the primary benefits of delivery work in addition to the other concerns as well.
0:57:19
Thank you.
