Last week, the Seattle City Council declined to vote on a sensible compromise bill that would have amended the flawed Delivery Pay Ordinance, reducing costs while ensuring Dashers earn nearly $20 an hour before tips and mileage. DoorDash is prepared to eliminate the current Regulatory Response Fee in Seattle once the reform bill is enacted and operational costs are lowered.
City leaders have had months to address this broken law, and with each passing day, businesses and Dashers continue to struggle. DoorDash fully supports the compromise bill that would guarantee Dashers earn at least Seattle’s minimum wage of $19.97 per active hour and will remove our $4.99 Regulatory Response Fee if this compromise is enacted. Despite our clear communication with city officials, we have been met with inaction and delays.
Currently, Dashers are required to make $26.40 per active hour, plus additional pay for mileage and tips. While this standard sounds beneficial, it has led to increased costs for consumers, resulting in fewer orders, fewer earning opportunities for Dashers, and less revenue for local businesses. We estimate that merchants in Seattle earned $14 million less than they otherwise would have on the DoorDash Marketplace between February and May of 2024, and there were 590,000 fewer orders for Dashers to deliver during the same period.
Although Dashers are earning more during delivery, the sharp decline in available deliveries has negated any intended improvement in earnings under the pay ordinance. Dashers are spending more time on the app waiting for delivery offers and less time actually making deliveries. Over the past six weeks, average hourly earnings for all time spent on the app have been 13% lower than in the six weeks before the pay ordinance went into effect. This law benefits no one, including delivery workers.
We will not remain silent while poor policy harms our communities. We are working tirelessly with thousands of Seattle Dashers, businesses, and consumers to urge the Council to address this issue. It is crucial for our local leaders to listen to their constituents’ voices, not just the special interests they are closest to.
