App-based food delivery drivers and customers react to Seattle’s new hefty fees

SEATTLE (KOMO) — Food and grocery delivery drivers and their customers are feeling the pinch following Seattle’s newly-enacted minimum pay law for app-based workers, impacting companies like DoorDash, Uber Eats, Instacart and Grubhub.

App-based food delivery drivers and customers react to Seattle’s new hefty fees (KOMO)

The new regulations added a fee to support drivers who make food deliveries as supplemental income or for full-time work. But, many customers share they can’t afford the increase, and drivers want the city to do something about it.

The added cost on the city’s new App-Based Worker Minimum Payment Ordinance appears to be falling on customers, and they’re noticing.

I recently tried to order a coffee and it was like $26 for a medium coffee. That was kind of insane,” Maddeline Moore of Seattle said.

Another woman provided a screenshot to KOMO in which her $35 Wingstop order through DoorDash had an additional $15 in taxes and fees tacked on. The receipt spells out the nearly $5 regulatory response fee, reading, “This fee is used to help cover DoorDash’s increased operating costs.”

The other added costs on the order were the company’s $4.70 service fee and $4.20 tax.

Seattle Rideshare Drivers Association Exec. Director and Uber Eats Driver Ahmed Mumin said since the new regulations were enacted in mid-January, he and other drivers have lost much-needed income they rely on to provide for their families. He’s reporting about half the number of trips compared to this time last year.

What we are telling the drivers for now is to write the city council and tell them the situation we are facing as drivers as this is not sustainable,” Mumin said.

“Under this new law, Dashers who deliver in Seattle now earn at least $26.40 per hour, before tips, plus additional pay for mileage while on delivery–far exceeding Seattle’s minimum wage,” a DoorDash spokesperson told KOMO in a statement Wednesday. “We warned the previous City Council that we would likely need to implement a new fee to help offset some of the costs of this unprecedented policy. Our hope is that the newly elected Council will come to the table in search of a solution that works better for Dashers, merchants and consumers in Seattle.”

The new regulations were championed by Lisa Herbold and Andrew Lewis, who are no longer on the City Council.

KOMO has reached out to City Council President Sara Nelson for comment about efforts to resolve some of these reported issues.

Grubhub sent KOMO the following statement and additional information:

“Grubhub is committed to complying with the new pay standard in Seattle, and we’ve made adjustments to our platform to run a sustainable business given the added costs to operate in the market.”

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