Uber Eats, DoorDash Agree to Minimum Pay for Australian Couriers

Reuters reported on November 25 that Uber Eats and DoorDash have struck a draft agreement with Australia’s transport union that would, subject to approval by the Fair Work Commission, guarantee delivery couriers a minimum hourly pay of at least A$31.30, about US$20.19. The figure represents roughly a 25 percent uplift for many couriers who are currently paid per delivery, and would align pay for on demand couriers with Australia’s minimum standards for casual workers.

Beyond the headline wage floor, the draft sets out requirements for the platforms to provide accident insurance, to share delivery job details with workers, and to give couriers access to records about their work. Those provisions are intended to increase transparency about how jobs are allocated and paid, and to reduce the precariousness that unions and regulators have long argued defines gig work.

The agreement follows a 2024 law that recognised so called employee like gig workers and granted them new negotiating rights, a change that shifted bargaining leverage into the hands of unions and regulators. Australian ministers hailed the draft deal as a world first for platform worker protections, a claim that underlines Canberra's ambition to set a template for other jurisdictions grappling with the social and economic consequences of rapid growth in app based delivery services.

Implementation of the agreement would begin in July if regulators formalise the arrangement, a timeline that gives platforms time to adjust pay algorithms, insurance arrangements, and operational procedures. For Uber Eats and DoorDash, the immediate business challenge will be absorbing higher labor costs. Options include compressing margins, raising consumer prices, changing delivery fees, or altering incentive structures for peak hours. Each path has trade offs for demand, retention of couriers, and competitive positioning in a market where consumers are price sensitive.

Economists and labour analysts say the Australian move intensifies global pressure on gig platforms to improve pay, benefits and transparency. Market observers note that regulatory decisions in one major market can influence commitments and litigation strategies elsewhere, particularly as unions in other countries press similar cases and policymakers seek models for managing platform work.

The consequences for couriers could be material. A guaranteed hourly floor reduces income volatility tied to order volume and travel times, and the addition of accident insurance addresses a longstanding gap in worker protection. Access to records and job level information may also enable couriers to better understand earnings drivers and challenge unfair deactivations.

For policymakers the settlement offers a case study in balancing worker protections with the innovation and convenience platforms provide. If the Fair Work Commission approves the draft, the agreement will test whether negotiated standards rather than litigation can produce a durable framework for gig economy labour relations. Observers in industry and government will be watching whether platforms accept higher structural costs, pass them on to consumers, or reengineer their business models in response.