Australia's two largest food delivery services, Uber Eats and DoorDash, have reached a landmark agreement with the Transport Workers' Union to establish minimum pay and working conditions for gig economy drivers. The joint submission to the Fair Work Commission proposes an hourly rate of at least A$31.30 ($20.19), matching the national minimum casual wage and representing a roughly 25% increase for many riders currently paid per delivery.
The proposed framework includes enforceable conditions such as a baseline hourly rate, new dispute resolution processes, clearer job information, and mandatory accident insurance. If approved, the deal would cover the entire food delivery industry, including platforms like Hungry Panda, and could set a precedent for other gig economy sectors such as rideshare and online care work.
Employment Minister Amanda Rishworth stated, “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.” The proposal comes as rival platform Menulog prepares to close its Australian operations on 26 November, consolidating the market under Uber Eats and DoorDash.
Transport Workers' Union national secretary Michael Kaine described the draft as “a world-first set of conditions for gig workers” that would result in “life-transforming wage increases.” Worker advocates argue that higher guaranteed pay could reduce the pressure on riders to take risks in traffic or work through exhaustion, addressing safety concerns in a sector that has seen at least 18 delivery worker deaths since 2017.
Companies insist the changes will not dramatically raise customer prices. Ed Kitchen, managing director of Uber Eats for Australia and New Zealand, said the agreement was a “meaningful step towards building modern laws for modern forms of work.” If endorsed by the Fair Work Commission, the new standards will take effect in July 2025.
