Customers using popular food delivery apps such as Uber Eats and DoorDash in Seattle, Washington, will now experience a hike in delivery prices as a result of the recently implemented Seattle City Council’s App-Based Worker Minimum Payment Ordinance. The law, effective since Saturday, introduces various minimum pay requirements, aiming to raise the average hourly pay for delivery drivers to over $26.
In response to the new regulations, Uber Eats and DoorDash have announced increases in delivery fees for customers to offset the higher costs associated with the minimum pay requirements. An Uber spokesperson stated, “This one more than doubles the fees consumers will have to pay, which means fewer orders for businesses, and fewer opportunities for delivery workers.” The company expects to lose hundreds of thousands of orders for small businesses in the area.
DoorDash also expressed concerns, noting in a press release, “Throughout this process, we warned the City that while well-intentioned, these extreme policy changes would have adverse effects on all members of our community – Dashers, merchants, and consumers.” Additionally, DoorDash mentioned potential challenges for drivers, including longer wait times and fewer job opportunities due to increased driver availability under the new rules.
The move in Seattle follows a broader trend, as restaurant chains in California prepare for a new law set to take effect in April, mandating a $20 minimum wage for all fast food workers. McDonald’s, Chipotle, and BJ’s Restaurants have already indicated that they will be raising prices in response to this legislation.
Customers nationwide are feeling the impact of rising food prices, with a recent NetCredit report revealing regional variations. Americans in Alaska, for instance, pay 18.7% more than the national average for fast food, while Texans enjoy prices 9.58% lower than the average.
As delivery app users grapple with increased costs, some are exploring ways to cut down on expenses by using ordering hacks. For instance, a McDonald’s fan has shared a method to get a $2 discount on a chicken McNuggets meal with every order.
In the ever-evolving landscape of food delivery and minimum wage laws, consumers and businesses alike are navigating changes that have significant implications for pricing, worker compensation, and overall industry dynamics.