DoorDash is raising delivery fees in Seattle, again.
Amid ongoing battles with strict gig worker regulations, the company calls Seattle “the most expensive market to facilitate delivery in the U.S.”
The city’s PayUp law, effective January 2024, required app-based delivery companies to pay workers at least $26.40 an hour before tips and mileage. DoorDash says this adds up to nearly $30 per hour per driver.
The third-party delivery giant argues regulations are hurting businesses and pricing consumers out of delivery. With delivery delays tripling and drivers getting fewer orders.
“Enough is enough. Seattle’s local businesses, Dashers, and consumers are all feeling the squeeze of this overregulation,” the company wrote in a blog post.
Revenue per store in Seattle reportedly dropped 2 percent after PayUp, while cities like Portland, San Francisco, and Denver saw a 10 percent increase in sales.
Debate continues
It’s unclear exactly how much the latest fee hike will be. The company says it operated at a loss in Seattle in 2024. But with $3 billion in quarterly revenue, some wonder if the company could pay more, without charging more.
Meanwhile, advocates say Seattle’s laws are giving drivers predictable income in an industry long criticized for lacking protections.
The fee increases are also in response to Seattle’s Worker Deactivation Rights Ordinance.
App-based delivery companies must now give workers 14 days’ notice before deactivation, explain the reason, and allow time for an appeal. DoorDash calls the process costly, drawn out, and intensive.
On the flip side, the Seattle Office of Labor Standards says it has already reinstated several workers and received more than 150 worker inquiries since January.
Seattle joins other cities aiming to regulate delivery. That includes New York City, which requires app-based delivery workers to earn a minimum of $21.44 per hour before tips. Other places, like Jersey City, N.J., have passed a 15 percent cap on delivery fees.
