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New York City is regulating the delivery industry with new government watchdog agency

The nation’s first city sustainable delivery department will regulate the surge of delivery drivers’ bikes and mopeds to promote safety and eco-friendly streets

Joanna Fantozzi, Senior Editor

January 29, 2024

3 Min Read
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New York City mayor Eric Adams announced last week in his annual State of the City address that the city would be creating a watchdog agency to regulate the booming delivery industry. The Department of Sustainable Delivery would be the first of its kind of the nation and would be designated to protect both delivery drivers and consumers.

Although Adams did not give many details on how the agency would work, essentially it would address the issues raised by the surge of delivery drivers on bikes and mopeds across the city in part by overseeing inspections and registration for e-bike drivers.

One of the issues the agency would address is the danger of lithium-ion batteries, which are often used to power electric bikes and scooters and can cause explosions and fires if not used properly. According to CBS News, 18 people died in New York City in 2023 as a result of lithium-ion battery explosions.

“New Yorkers have been clear: We welcome the future of transit and mobility, but we cannot have mopeds speeding down our sidewalks, delivery apps exploiting workers, or chaos on our streets,” Adams said in a statement. “Our streets — and how they’re used — have changed, and we’re changing with them. The Department of Sustainable Delivery will be a first-in-the-nation way to let us retake the reins of our streets and ensure that the next generation of mobility innovation works for our workers, our neighbors, and our city, as we continue to deliver on our vision to protect public safety, rebuild our economy, and make this city more livable for working-class New Yorkers.”

This is not the first time in recent years that New York City has tried to crack down on the delivery industry. In 2021, the city passed a set of bills to protect couriers and delivery drivers, which let delivery drivers start to set parameters for their own routes, including maximum distance they’re all to travel to make their deliveries and the right to use the restrooms of the restaurants they’re delivering food for. The following year, those worker protections were expanded to include such guidelines and rules as letting drivers choose their own routes, getting paid at least once a week, and being provided with insulated bags for six or more deliveries.

Most recently, New York City passed a minimum wage law for delivery workers that would require app-based food delivery platforms to pay their delivery workers $19.96 per hour, or almost triple the previous $7.09 average rate. Under the legislation, apps can choose whether to pay their employees hourly, or only for trip time. For the latter option, these companies would have to pay approximately 55 cents per minute, which adds up to $33 an hour -- more than double the city’s current minimum wage rate for other workers.

Although delivery platforms tried to challenge this law in court, their appeal was denied, and the new minimum wage law was upheld by the Appellate Division of the New York State Supreme Court in December. The minimum wage has currently been increased to $17.96 per hour, and will creep up to $19.96 an hour when the law takes full effect in 2025.

Contact Joanna at [email protected]

 

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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