Soon, delivery workers in Australia will get better payment systems, thank you to this big partnership between Uber Eats and DoorDash. Here is the scoop.
The issue with wages
The amount that delivery workers receive, not just in Australia, but across the globe, is a huge issue they find themselves in. Mainly, this stems from their controversial classification as independent contractors, instead of formal employees.
Since they are classified as independent contractors, while they regularly receive payments, several of them believe that they are still too low and inconsistent, coupled with lack of benefits, and significant out-of-pocket expenses.
In particular, the key issues include lack of formal employment recognition, variable and decreased earnings, operational costs and expenses, algorithmic management, penalties and fines, and the so-called cash-on-delivery nuisances.
Sooner or later, these problems will be completely addressed.
Uber Eats, DoorDash join forces for Australian delivery workers
Uber Eats and DoorDash struck a deal with the country’s transport union, a historic agreement that will see Australian food delivery workers gain minimum wage levels, which is a step towards better compensation.
A draft agreement was made earlier this week, stating that workers could already earn around $21 an hour, which represents an increase of about 25 percent for some couriers previously paid per delivery and not per how long they worked.
Utsav Bhattarai, a food delivery worker in Canberra, acknowledges this initiative, as it would let them escape from the harsh realities wherein they work through illness and dangerous weather just to chase targets and pay bills.
The deal is also seen as an opportunity for the classification to be lifted, since this will place them at par with the minimum wage that Australian casual workers earn. It will hopefully take effect this July 2026.
‘Falling through the cracks’
Employment minister Amanda Rishworth told Ridesharing Forum, For too long, gig workers fell through the cracks. We didn’t think it was fair that these workers missed out on minimum standards and had to rely on tips to survive. That’s not the Australian way.”
This landmark agreement comes after the center-left government of Australia passed a law in 2024 that defined gig workers as “employee-like workers” – an awful classification – then gave them the right to negotiate minimum pay and conditions.
Uber Eats and DoorDash are the biggest players in the Australian food delivery market, with other platforms like Menulog closing down, passing on the demand to these two delivery platforms.
Furthermore, these two companies will also now be required to take out accident insurance for their workers, giving them access to their records and providing them with more detailed information about each delivery job.
Michael Kaine, the national secretary of the workers’ union, stated, It is a world-first set of conditions for gig workers performing this work, and it will result in life-transforming wage increases. Until this point in time and even as we speak today, there are swathes of workers in the gig economy that are being paid below the minimum national wage."