How much money do bike messengers really make?
/How much money do messengers make?
Over the years one consistent source of confusion concerning the bicycling courier industry is how messengers are paid and how much money they can actually make. The recent reality show Triple Rush did not really address this issue in any detail other then to suggest that bike messengers did not make much money. That can often be true but is not necessarily the rule, at least at Breakaway. I thought I would take this opportunity to look at the issue in some detail and explain how Breakaway pays couriers and meets all wage law obligations.
Most courier companies in New York City compensate their crews in one of two ways; they are either paid a set hourly rate, usually the minimum wage or slightly above, or they are paid via a commission of the total price of each individual run they deliver. In most cases the commission system will result in couriers averaging a higher average hourly rate in a given pay period then a straight hourly system. The commission system also incentivizes couriers to perform at a higher level which provides clients with better service and the couriers with a higher wage. Breakaway employs the latter system with a few adjustments that ensure that we are in compliance with all state and federal wage law. I will cover how these adjustments work in a moment but first I want to actually tell you what I tell new hires about how much they might be able to make in an average week.
On our commission system even a beginning courier will make $4-$5 for him or herself for every delivery they do. So if the can do 10, 15, 20, or 25 runs in a day you can do the math and get a rough guide to what is possible. Played out over an average 5 day week on this commission system even beginning couriers should average $8-$12 per hour for the hours they work. Another sizable group of experienced couriers average $11-$15 per hour and there is a small group of high performing couriers that are capable of $15-$21 as an hourly rate over 5 days. I stress small on the last group. I can usually count them on one hand.
Over the course of any given 7 day pay period (the pay period runs from Saturday through Friday and 99% of couriers only work Mon-Fri); Breakaway compensates 80-95 full and part-time bicycle couriers. Of those full-time bikers there will be a small number, and again…I can count them on one hand, whose net pay will be $6-$700 and sometimes more. A larger group of full-timers, usually 15-20 will have a net of $4-$600 for the same week. Any decent full timer with a little experience should be able to take home $3-$400.
As far as what a part-time courier can make it varies depending of factors like how busy we are, what time of day they work and how efficient a courier they are. Breakaway employs and encourages a large part time crew since in New York there is a ready population of students, actors, artist and athletes who need a part-time job that flexes with their schedule and earns them a good hourly rate.
Now that I have described to you the benefits of an incentivized commission system I want take you through the adjustments we make to this system to ensure its fairness since if misapplied it can lead to couriers who earn below the minimum wage for the hours they work. First off, as a rule our goal is for even the freshest rookie to make $9-$12 per hour since the actual minimum wage is not nearly high enough to live in New York City. We get pretty close on most people but what if we are not close? What if a courier’s commission wage dips below the minimum wage? We have several systems in place to catch and correct this and provide proof to the courier that we have done so. The first thing we do is track all the hours a courier works in a pay period from their first dispatch until their last signature is given. We calculate what the minimum wage would be for those hours and show the courier that number and what they made on the commission in a weekly printout. If they have dipped below the minimum wage they will see that we have added income to bring them up to the legal level. Frankly though, this does not happen very often…a few people on any given week, and if someone is consistently performing below par they risk losing their job for non-productivity. This almost never happens either since the system is designed to ensure it doesn’t.
Any company in this business is obligated to track their employee’s hours and meet minimum wage requirements. Another thing they are also required to account for is overtime. Breakaway tracks any overtime hours a courier works and pays them 1.5 of their regular rate for each of those hours….this means what they averaged per hour for that pay period, on top of their commission.
Sounds like fun doesn’t it? We always are as honest as possible about how difficult this job is and what the average person is capable of making. Our best 5-8 bikers in a given calendar year will usually make $35-$42,000. That is a small number of people and at that level they must be considered professional athletes. Still though, there is a larger group of people who are able to make ends meet working full or part-time at Breakaway and we feel a deep obligation to help make sure that these couriers who work so hard are compensated fairly.
Over the years the cost of living has risen faster then the rate courier companies can charge clients and this makes it even tougher. The rule of thumb used to be that you charged double the minimum wage for a delivery. When that wage was $4 it was easy to do. Now the minimum wage in New York is $7.25 and it is not possible to double that. It all seems to be just another part of the middle class squeeze that so many millions of us have experienced in our lifetimes.
As a client or a potential client reading this you need to know that Breakaway Courier is an open, transparent company that pays its workers a fair, legal wage for their hard work and that what we are charging you for a delivery is based on these assumptions. It is who we are.
As a potential courier who might apply for a job you need to know that we will account for every hour you work and make sure that you understand how you were compensated. If you apply to other companies ask them how they account for hours worked and if they provide their couriers with proof that all federal and state wage requirements are met. There are many fine companies that meet all these requirements but unfortunately there are some that do not. They will pay you a commission that does not equal the minimum wage. Know your rights and proceed with caution.