Seattle Delivery App Fee Backfires Spectacularly, Hurting Gig Economy Workers

A new ordinance in Seattle meant to improve wages for food delivery drivers by tacking on a $5 fee to every order is instead hurting their income, according to the gig economy workers the city set out to help.

NBC KING 5 reports that a new $5 fee on food delivery app orders in Seattle was meant to ensure drivers receive a minimum wage of $26.40 per hour before tips. But drivers say the Pay Up legislation, enacted January 13, is slashing their wages and opportunities.

Groups of idled delivery drivers can now be seen waiting around popular restaurant areas. The areas that used to be “hotspots” for orders have lost their luster, according to delivery drivers like Gary Lardizabal. “Sundays before the ordinance, you know, we’d be thinking breakfast. Today, I didn’t even touch it. They’re not going to order. It is definitely backfiring,” Lardizabal said.

Driver Mia Shagen said her delivery opportunities have been severely limited since the ordinance went into effect. “I’ve got nothin’. I’m not gonna sit here for hours for one frickin’ order,” she said. The drivers say tips and overall earnings have gone down, despite claims by companies like DoorDash that drivers will make more money. One driver reported making $931 this week last year, but only $464 this week.

Drivers believe the fee has caused customers to order less frequently. Typical busy delivery days now end much earlier without explanation, Shagen said. Lardizabal said South Lake Union by Amazon used to be a top earning spot. But drivers there echoed that incomes have sunk. “We’re grinding. And we are for real not getting $26 an hour,” Lardizabal stated.

The drivers also report having more competition from new drivers drawn by the minimum pay promise. “Everybody in cars, planes, trains, automobiles, mopeds are converging on the city,” Lardizabal said.

Read more at NBC KING 5 here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.