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Sydney Uber Eats Drivers Earn Less Than Minimum Wage During Peak Times, Inquiry Finds

Sydney Uber Eats Drivers Earn Less Than Minimum Wage During Peak Times, Inquiry Finds

The company admitted to paying below the standard rate even when there is high demand.

Stewart Perrie

Stewart Perrie

An inquiry into the work culture of the gig economy has unearthed a revelation about how much some delivery drivers are being paid.

There are plenty of options when it comes to getting a delivery service to bring food straight to your front door.

Some offer in-app opportunities to tip your rider and you might think twice about that after seeing their salary.

The Select Committee on Job Security at the New South Wales Upper House has asked to hear from representatives of Uber, Uber Eats, Ola and Deliveroo.

Uber said its food delivery riders receive $21.55 per hour in Sydney during peak meal times, which is when they'll be their busiest.

Committee chair Tony Sheldon quizzed Uber Eats general manager Matthew Denman with: "Are you aware that the minimum wage for casual workers in Australia is $24.80 per hour?"

PA

The Uber Eats GM replied, saying: "I'm aware of that, yes Senator."

The Senator added: "So you're paying below the minimum wage and this is during the peak times, this is where there is high demand."

He admitted again that this was below the minimum wage, however Mr Denman explained how their wage wasn't representative of their work life.

According to the ABC, the Uber Eats GM said delivery drivers aren't locked in to working solely for them.

"It is important to note that when someone is partnering with us, there is no commitment for them to only partner with us," he said. "So in between trips, they might be running errands, they might be working on other platforms and earning extra income."

While they might have the freedom to work elsewhere and conduct life admin, it doesn't mean their job is cushy.

The inquiry into the gig economy was sparked after five delivery drivers were killed in the space of two months last year.

According to the Guardian, one food delivery rider died in Australia every 11 days between September 27 and November 24.

The fifth victim in the series of deaths last year died in Surry Hills after being hit by a truck carrying an excavator.

Mr Denman said the company could bring in a minimum payment for riders or drivers when they were completing a delivery or during a fare.

"In order to do that it would require us to require that all drivers and delivery partners only used our platform and worked fixed shifts in fixed places," he said.

In its submission for the inquiry, Uber said more than 98 per cent of drivers and delivery people earned at least the minimum wage after costs.

Featured Image Credit: PA

Topics: Australia