The workings of this landmark deal across Australia are going to give minimum wage to delivery drivers driving for the Uber Eats app! At last! RSF has more.
Before the historic deal
According to Ridesharing Forum’s research, Uber Eats delivery drivers in Australia earn around $29 hourly for active engaged time, or from accepting to completing orders. Sometimes, it’s even as low as approximately $14.
Interestingly, the actual take-home pay varies based on their car type, total hours worked, and busy delivery periods.
So, how much is the minimum wage in Australia? Per week, it should be at around $1,005, with or minus the tax, you’ll never know!
The landmark deal
This time, Uber Eats delivery drivers, who are gig economy workers struggling with low pay and lack of protections, will start earning at the very least $31.30 hourly
The drivers’ union is praising this deal, saying it is “a world’s first,” not at world’s end.
Considering the authority of Australia’s industry, the Fair Work Commission, is this deal worth it?
What are the implications?
The RSF team chatted with some of the drivers here in Australia, and one of them said her pay will really “increase.”
“Since it came out that $32 per active hour was on the table, I’ve been tracking the numbers and I’ll be $100 to $200 better off per week. It’s a really good step in the right direction. It shows these foreign Silicon Valley tech companies that this is not the USA. We have standards here and we have rights here.”
This brand-new minimum wage standards apply to any gig worker performing on-demand delivery of food, drinks, or groceries.
These standards constitute fresh dispute processes, feedback mechanisms, representation rights, and personal injury insurance for injured workers.
Specifically, those driving cars will earn $32, while bike riders will earn somewhere from $31.30. As for the minimum rates, they will increase by 50 cents an hour effective New Year 2027. Note that the safety net is different from a minimum page, reports emphasized.
Another driver from Melbourne, Helen, is saying she is happy about this, especially that working for Uber Eats, she generally earns less than $20.
Also under the deal, Uber Eats won’t be relegated to pay drivers an hourly rate, while gig workers continue to be paid each trip, based upon factors including time, distance and other promotional bonuses the delivery companies use as incentives.
Instead, the companies will have to pay their drivers the amount in accordance with the minimum wage rate that other workers in other fields receive. If the driver receives less, the platform must top-up their earnings to meet the amount. Quite stunning!
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