New York’s delivery sector is set to lose one of its longstanding service providers. Relay, a business-to-business courier platform that handled restaurant deliveries and fulfilled orders for other apps, is exiting New York City and ending its local operations on April 1. Employees were notified by email to transition to other third-party delivery platforms. The announcement comes as many riders face uncertainty amid the city’s increased focus on low pay and app deactivation practices.
As reported by Streetsblog, Relay told workers in an email that “Relay is no longer able to run a sustainable business in our key market of New York City” and confirmed it will end deliveries on April 1. The message urged riders to sign up with other platforms and warned that “some platforms may have waitlists.” The company also told the outlet it was “grateful” to those who had delivered for the past decade.
The exit lands after a round of enforcement from city regulators. In June 2025, the Department of Consumer and Worker Protection reached a settlement with Relay that included $200,000 for affected workers and $20,000 in civil penalties, and required the company to begin paying the city’s delivery minimum of $21.44 per active hour starting July 3, 2025, according to the City of New York. The agency said its investigation had uncovered violations tied to maximum trip distances and unlawful deactivations.
What the new deactivation protections require
City lawmakers recently approved a package of bills aimed at curbing unexplained app deactivations, requiring delivery platforms to provide written reasons, advance notice and an appeals process before permanently cutting off a rider. The full Council package, which includes measures focused on delivery deactivations, won approval in December 2025, according to the New York City Council. Advocates say the rules are meant to reduce the ever‑present fear of sudden deactivation that pushes riders to accept unsafe or very long trips just to stay in good standing with the apps.
Who owns Relay and why consolidation matters
Relay’s exit is unfolding against a backdrop of consolidation in the delivery market. UPI reported that Wonder agreed to purchase Grubhub for roughly $650 million in late 2024, and Streetsblog has reported that Wonder completed an acquisition of Relay as it built out a vertically integrated network that marries kitchens to its own delivery system. Labor advocates say that kind of consolidation raises the risk that companies will restructure or simply shutter lower‑margin services rather than absorb the added costs that come with stronger local worker protections.
Impact on riders and restaurants
Relay’s closure eliminates a dispatch option for neighborhood restaurants that relied on its lower-cost courier service and immediately ends a source of income for many riders. Organizers have described the decision as a foreseeable response to increased regulatory enforcement. Restaurants that previously used Relay now face higher fees on other third-party apps or must manage deliveries in-house.
Legal stakes and next steps
Under the DCWP settlement, riders who were wrongfully deactivated by Relay may qualify for restitution or reinstatement, and the agency has encouraged affected workers to submit complaints. The consolidated text of the new deactivation rules (Local Law L.L. 2026/034) indicates that these protections will take effect in mid-January 2027, establishing legal requirements for notice, appeals, and possible reinstatement as outlined in the municipal code.
For now, thousands of delivery workers are transitioning to other platforms while worker groups and regulators monitor whether additional companies exit the New York market. The industry’s response over the coming weeks will indicate whether the city’s rules can improve pay and due process for riders without prompting a wider departure. Regulators, advocacy groups, and restaurants are closely observing the situation as April 1 approaches and riders seek new opportunities.
