DoorDash and Uber Eats announced that they have reached a draft agreement with the Transport Workers' Union of Australia that will set a minimum hourly pay of at least A$31.30 (about US$20.19) for delivery workers in the country. The deal also includes accident insurance, access to work records, and clearer information about delivery jobs, and is expected to take effect in July 2026 after approval by the Fair Work Commission.
The agreement comes in the wake of Australia’s 2024 “Closing the Loopholes” legislation, which defined gig workers as “employee‑like” and gave them the right to negotiate minimum pay and conditions. The draft deal is pending Fair Work Commission approval, and the companies will need to adjust their payment systems to comply with the new hourly floor and the associated benefits. Menulog’s exit from the Australian market at the end of November 2025 has left DoorDash and Uber Eats as the dominant players, creating a market environment where they can negotiate improved terms without the pressure of intense price competition.
The new wage floor will raise labor costs for both companies, potentially leading to higher delivery fees or tighter margins. Analysts expect the companies to absorb some of the cost increase through modest price adjustments, while maintaining the flexibility that has attracted gig workers. The agreement also positions DoorDash and Uber Eats as leaders in worker protection, which could enhance brand reputation and reduce turnover in a market where 18 delivery workers have died on the job since 2017.
Ed Kitchen, Uber Eats managing director for Australia and New Zealand, said the deal was “a meaningful step towards building modern laws for modern forms of work” and would give workers “protection, security, and flexibility.” DoorDash’s Asia Pacific vice‑president added that “labour standards need to keep pace with the gig economy’s growth.” Michael Kaine, national secretary of the Transport Workers' Union, called the agreement a “world‑first” that would bring “life‑transforming wage increases” to gig workers, while Employment Minister Amanda Rishworth noted that the move was “the Australian way” of ensuring fair standards for all workers.
The agreement is widely regarded as a world‑first for gig‑economy workers, setting a precedent that could influence labor regulations in other jurisdictions. By aligning pay with Australia’s minimum wage for casual workers, the deal could prompt similar negotiations in markets where gig workers are currently paid below statutory levels. The outcome will be closely watched by regulators, competitors, and labor advocates worldwide.
The draft agreement will be reviewed by the Fair Work Commission, with a decision expected in the coming months. Once approved, DoorDash and Uber Eats will implement the new pay structure in July 2026, marking a significant shift in the companies’ labor cost model and potentially reshaping the competitive dynamics of the Australian food‑delivery market.
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