The increase, which requires app-based delivery workers to be paid $17.96 per hour before tips, is the first such minimum wage in the country for an industry that has exploded in popularity.
Delivery drivers were hailed as pandemic heroes. But they say the rise of contactless delivery has made customers less inclined to tip generously and gig work is becoming an even harder way to make a living.
Lyft recovered from pandemic restrictions slower than Uber, and critics said it lacked the kind of ambitious investments that could distinguish itself from its rival.