Food Delivery Orders Plummet in Seattle After New Driver Pay Law
Business statistics show over the last few years, a number of ordinances and laws in Seattle intended to help workers have actually cost jobs, lowered sales and revenue. Now, another one aimed at app delivery drivers is doing the same.
Doordash, Uber Eats report noticeable drops in sales
The law went into effect in January, it's the App-Based Worker Minimum Payment Ordinance. It requires gig workers to be paid the greater of a minimum-per-minute payment of $.44 cents, a minimum per-mile rate of $.74, or a minimum per-offer amount of $5 (for each delivery).
Critics are referring to it as the 'minimum wage' law for app-based delivery drivers.
After taking effect January 13th, Doordash, Uber Eats, Grubhub, and others implemented what are called regulatory fees to offset their increased costs, therefore, driving up customer costs. Doordash says there were 300,000 fewer orders so far this year, projected to be 1,7 million for the entire year.
Uber Eats said they saw a 30 percent drop in orders since the ordinance took effect. WA business retail officials say this ordinance is having "stunning" effect on app-based delivery drivers it was supposed to help. Business leaders are pushing for the Seattle Governance, Accountability and Economic Development Committee to address the issue soon.
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Gallery Credit: Joni Sweet