New York minimum wage proposal ‘encouraging development,’ says Citi

The New York City Department of Consumer and Worker Protection yesterday reduced its proposed minimum wage rates for app-based restaurant couriers and included an alternative method of calculating rates based on trip time, Citi tells investors in a research note. After accounting for these changes, the new proposed minimum rates are now 16% less for 2025 and 6% less for 2024 very the original proposal and align better with how app-based companies currently pay couriers, Citi contends. The firm views this as an "encouraging development" and says all three platforms in the U.S., Uber (UBER), DoorDash (DASH) and Just Eat Takeaway (JTKWY), appear confident they have levers to mitigate changes to courier pay to ensure minimal impact to overall profitability. Citi reiterates Buy ratings on all three companies.