Seattle's minimum pay ordinance hurting delivery drivers it meant to help

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The Seattle City Council's minimum pay law for app workers is taking a bite out of delivery orders for food and groceries as consumers balk at higher order costs.

The Seattle City Council’s recently implemented minimum payment ordinance for app-based workers like those who work handling deliveries through apps such as DoorDash, Uber Eats and Instacart is hurting the workers it intended to help. In 2022, the Seattle City Council enacted a first-of-its-kind ordinance that aimed to help ensure that app-based delivery drivers earn a minimum wage plus tips and compensation for expenses.

My experience in downtown Seattle, which is booming with Amazon and other tech workers, wait times are half the day," Lardizabal said in an interview. "There’s reduced orders for drivers and couriers… and there’s definitely reduced business for restaurants." "All of them you can see there’s just less bags on the delivery trays, the racks. Chipotle used to just have bags upon bags — that’s gone down," Lardizabal said.

Tammie Hetrick, president and CEO of the Washington Food Industry Association, told FOX Business that independent grocery stores have also noticed a decline in delivery orders — many of which are placed by elderly residents or working families. "I have stores reporting about a 10% reduction in deliveries," Hetrick said. "I mean, we’re struggling, you know, we have a 1% to 2% profit margin and just the cost of goods have gone up so much just to get them to the store.

 

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