The debate over app-based delivery drivers' wages is heating up in Seattle as the City Council mulls a controversial ordinance that could slash their earnings. Pushed ahead by Council President Sara Nelson, the legislative body is faced with a decision that could have significant consequences for gig workers and the local restaurant industry alike. Nelson has introduced an ordinance, sourced Seattle Eater, aimed at reducing what apps like DoorDash and Uber Eats must pay their delivery personnel, prompted by a response to what many see as punitive customer fees.
Back in January, when an earlier ordinance aimed at boosting delivery workers' pay kicked in, companies slapped an extra $5 fee on Seattle orders, stirring an outcry from customers and reportedly denting restaurant revenues. In an interview with FOX 13 Seattle, Danielle Alvarado, Executive Director of Working Washington, articulated the criticism poignantly, "At the end of the day, this proposal is to return this industry to sub-minimum wages, which is why we oppose it." The proposed legislation, known as CB 120775, pegs driver pay to an hourly rate and a per-mile fee, but detractors argue it fails to account for the full financial burdens shouldered by gig workers.
Discontent with the high fees and the subsequent decline in orders has led to intense scrutiny over the ordinance. Citing data from Drive Forward, Nelson told KOMO News about a stark decrease in consumer demand which has inadvertently penalized drivers and restaurants. DoorDash itself has claimed an estimated drop of 300,000 orders in the city since January's ordinance took effect.
A broader disquiet echoes throughout the Seattle gig economy landscape, accentuated by accusations against companies like DoorDash for offloading the costs onto customers. Alvarado's insistence on the need for transparent data, particularly concerning customer fees and their impact on workers, reinforces a narrative of unease among stakeholders. With the proposed legislation aimed at eradicating the Office of Labor Standards’ ability to demand records from companies for regulatory purposes, critics demand clarity and are wary of a slippery slope, "If we have parts of our economy where they say all bets are off, there are no expectations with how businesses treat workers, that's something that will never stay to one segment," Alvarado warned in an interview with FOX 13 Seattle.
Seattle's City Council is now in a race against time, with amendments to be considered on May 9 and a full council vote slated for May 21.
