DoorDash has reported significant adverse effects following the enforcement of minimum pay regulations for app-based food delivery workers in December 2023. The data indicates considerable economic damage, including major revenue losses for small businesses and a reduction in job opportunities and earning potential for Dashers.

According to a press release by DoorDash, the company is struggling with substantial losses due to policy changes in New York City. These changes have resulted in an alarming 850,000 fewer orders and a $17 million decrease in revenue on the DoorDash Marketplace within just two months. If this trend continues, it could potentially lead to an annual deficit of 5.6 million orders in New York City, equating to over $110 million in lost merchant sales. This downturn not only diminishes opportunities for Dashers due to reduced customer demand but also results in longer wait times for orders and changes on the platform that limit the flexibility vital to many Dashers.

DoorDash's new data reveals that the number of new Dashers in New York City has fallen by 20% since the implementation of the minimum pay rate policy. DoorDash says it is engaging with local lawmakers, community advocates, and business groups to find solutions that benefit all stakeholders, particularly Dashers. In light of similar rules being adjusted in other cities, DoorDash is urging policymakers in New York City to consider alternative approaches to mitigate these negative impacts.

Founded in 2013, DoorDash is a technology company that connects consumers with local businesses across more than 25 nations worldwide. According to information provided on its Overview webpage, DoorDash offers solutions aimed at enhancing business growth and customer engagement. With a primary focus on local commerce infrastructure, DoorDash assists merchants adapt to a convenience-driven market while providing employment opportunities for job seekers and expanding consumers' access to community amenities.