Residents in a key city who use popular food delivery apps DoorDash and Uber Eats will now face higher costs for their orders. This price increase is the result of new legal changes that are affecting delivery services nationwide.
As similar actions are taken across the country, customers of these apps should expect to see a rise in delivery charges.
Higher Costs for DoorDash and Uber Eats Orders in Seattle
Seattle, Washington, residents who use DoorDash and Uber Eats for food delivery now face increased fees on every order. This price hike follows the implementation of the Seattle City Council's App-Based Worker Minimum Payment Ordinance, which was effective last Saturday.
The ordinance sets new minimum pay standards, ensuring delivery drivers earn an average of over $26 an hour. To offset these increased labor costs, widely used apps such as Uber Eats and DoorDash have announced they will raise customer prices.
In a statement to Fox Business, an Uber spokesperson expressed concerns about the recent fee increase, stating that it more than doubles consumer costs. This significant fee rise is expected to decrease orders, adversely affecting local businesses and reducing job opportunities for delivery workers.
Additionally, the spokesperson highlighted the potential loss for small businesses, anticipating that Uber might see a reduction of hundreds of thousands of orders in the area due to the increased fees.
Following the Seattle City Council's enactment of a new minimum pay ordinance for app-based workers, food and grocery delivery services that use gig workers are adjusting their operations. These adjustments include price increases and changes to user benefits due to the higher costs of complying with the new law.
The ordinance guarantees workers a minimum of over $26 per hour and has already led to significant operational changes. Instacart, for instance, will ensure its shoppers in Seattle receive this minimum wage. However, the company has announced it will remove certain perks for its shoppers, such as extra pay for heavy orders, peak earning times, and the option for immediate payment.
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Delivery Companies React to Seattle's New Earnings Standard
Uber Eats and DoorDash representatives have provided statements regarding Seattle's new earnings standard for delivery workers, expressing concerns and outlining the resulting changes.
Uber Eats spokesperson shared, "While Uber supports reasonable earnings standards nationally, the new Seattle law more than doubles consumer fees. This increase could lead to fewer orders for small businesses and reduced job opportunities for delivery workers."
They emphasized Uber's willingness to ensure couriers receive minimum wage plus expenses. Still, they warned that the new standard could harm more than help, increasing customer costs and potentially resulting in a significant loss of orders and job opportunities. The spokesperson also noted that customers will see an additional $5 local operating fee alongside increased service fees.
DoorDash's representative commented, "City Council's previous decisions have increased costs and fees for Seattle residents. In response to their costly and unnecessary rules, DoorDash will introduce a regulatory response fee on all Seattle orders."
They expressed concern that these fees would lead to lost revenue for local businesses and fewer earning opportunities for workers, urging the new City Council to reconsider these rules that exacerbate the cost-of-living crisis.
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