The days of delivery riders earning below minimum wage while dodging traffic in the rain are about to change. Australia just became the first country in the world to secure guaranteed minimum pay for food delivery drivers.
On 25 November 2025, the Transport Workers’ Union announced a landmark agreement with Uber Eats and DoorDash. The deal promises to transform the gig economy by establishing the minimum pay for food delivery drivers.
Riders will earn at least $31.30 per hour from July 2026. Drivers using cars will receive $32 per hour. But there’s a catch. The Fair Work Commission still needs to approve the arrangement.
How the New System Works
The agreement creates a safety net that didn’t exist before. Under the draft consensus filed with the Fair Work Commission, couriers will receive hourly rates instead of per-delivery payments.
For many riders currently paid per drop-off, this represents a pay rise of roughly 25 per cent. Some workers reported earning as little as $12 to $18 during quiet periods.
Transport Workers’ Union national secretary Michael Kaine called it a “world-first set of conditions.” He told reporters the deal would result in “life-transforming wage increases” for gig workers.
Will never forget this historic moment. Food delivery riders lodging the first ever application for minimum pay and entitlements under brand new laws fought for by TWU members over years. From here, the exploitative gig economy changes. pic.twitter.com/9RJoT5OShh
— Michael Kaine (@TWUMichaelKaine) August 29, 2024
The new framework includes more than just hourly rates:
- Accident insurance coverage for injured workers
- Greater transparency around delivery requests
- Access to dispute resolution processes
- Protection from unfair deactivation
Canberra delivery worker Utsav Bhattarai shared his relief at the news conference. “This win is for every worker who can now take sick leave, who can now work 40, 50 hours and stay home, spend some time with their families,” he said.
The timing couldn’t be more critical. Menulog announced it would cease Australian operations at midnight on 26 November 2025, leaving thousands of riders without work. The platform’s departure means Uber Eats and DoorDash now control the vast majority of Australia’s food delivery market.
The Road to Reform
This breakthrough didn’t happen overnight. The foundation was laid in August 2024 when Australia’s centre-left government passed groundbreaking gig economy reforms.
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 created a new category of “employee-like” workers. This classification applies to gig workers who rely on digital platforms for substantial income but don’t fit traditional employee or independent contractor definitions.
The legislation gave the Fair Work Commission power to set minimum standards for these workers. It also provided dispute resolution mechanisms and protections from unfair platform deactivation.
These reforms followed years of advocacy by unions highlighting dangerous working conditions. The TWU reports 13 food delivery riders and one rideshare driver have been killed since Australia’s transport gig economy began in 2017.
Australia’s approach to the minimum pay for food delivery drivers represents a middle path. It allows the Fair Work Commission to establish enforceable terms around pay, working time, and insurance without converting gig workers into full employees.
Industry Response Reveals Mixed Emotions
Uber Eats Australia and New Zealand managing director Ed Kitchen expressed support for the changes. “Uber Eats has long supported sensible and modern reforms that strengthen protections and benefits for delivery people, while maintaining the flexibility that is central to gig work,” he said in a statement.
Both companies indicated the changes would have minimal impact on prices. They argue most workers already receive comparable rates. The new standards are designed to catch those who currently fall through the cracks.
Workplace Relations Minister Amanda Rishworth welcomed the negotiated outcome. “This is what it looks like when there are co-operative workplaces where workers and companies and their unions sit down to discuss what is really important,” she told reporters in Canberra.
The agreement follows similar patterns seen globally. EU nations recently drafted rules to determine if platform employers should offer employee benefits. Australia’s approach, however, goes further by mandating minimum hourly rates.
The deal positions Australia as a potential model for other nations grappling with gig economy regulation. Countries worldwide are watching how this plays out.
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What Happens Next
The Fair Work Commission now holds the power to approve or reject the proposed standards. If approved, the minimum pay for food delivery drivers will take effect from July 2026.
Workers will need to meet eligibility requirements. They must earn less than the Contractor High Income threshold of $175,000 for the current financial year.
The consolidation of the delivery market following Menulog’s exit raises questions about competition and worker choices. With fewer platforms operating, drivers have less ability to switch between apps if conditions deteriorate.
Consumer advocacy groups warn that reduced competition could lead to higher delivery fees and reduced service quality. Restaurant partners may also face increased commission rates.
However, union representatives argue that proper worker protections shouldn’t depend on companies racing to the bottom. Kaine emphasised that workers deserve baseline standards regardless of business models.
For international students and casual workers who rely on delivery gig work for flexible income, the changes offer both security and reduced options. The closure of Menulog removes one avenue of work, while the new standards promise fairer compensation.
Australia’s move signals a broader shift in how governments approach the gig economy. The question isn’t whether workers deserve protections. It’s how to provide them without destroying the flexibility that makes gig work attractive.
This landmark agreement proves that balance is possible. Time will tell if the model succeeds.
