DoorDash slams ‘extreme regulations’ making Seattle the most expensive market to operate in

In a blog post published Monday, DoorDash announced that customers in Seattle will now see a clear fee on their receipts labeled as a "Regulatory Response Fee," a direct result, the company says, of mandates enacted by the Seattle City Council.

The company blames a city ordinance, passed earlier this year, that imposes a permanent $26.40 minimum hourly wage for app-based delivery drivers, plus additional compensation for mileage. Seattle’s law, which went into effect in January, is part of the city’s broader efforts to treat gig workers like employees. But DoorDash says the unintended consequence is dramatically higher prices for customers, fewer orders for restaurants, and fewer opportunities for workers. "Extreme regulations like Seattle’s law are making it more expensive for consumers to get the food they love, harming local businesses and reducing opportunities for Dashers," the company wrote.

According to DoorDash, the average fees for Seattle customers are now more than twice as high as those in other major western US cities like Denver, San Francisco, and Portland, despite Seattle not being the largest market among them. The company says this is a direct result of the city's sweeping gig worker compensation mandate, and that such price differences are discouraging customers from placing orders altogether.

To adapt, DoorDash says it’s been forced to raise fees, limit special offers, and even reduce service areas. The company also shared data indicating that Seattle-area orders have dropped significantly since the law went into effect, hurting not only the platform but also local restaurants that rely on app-based delivery.

Critics warned that the added costs would be passed directly to consumers, and DoorDash’s blog post echoed that concern, suggesting Seattle’s approach could become a cautionary tale for other cities considering similar legislation.

The company closed its post by encouraging local leaders to reconsider the policy and collaborate on “solutions that work for everyone — consumers, restaurants, and Dashers alike.”

Seattle's rising costs aren’t limited to food delivery. A recent analysis by NetCredit found that Seattle also has the highest average cost for a 30-minute Uber ride in the United States, clocking in at $60.00 — double the cost of the same trip in Indiana, where riders pay just $30.35.

Multiple factors have driven these prices sky-high. Seattle is one of the most expensive cities in the country, and those higher operating costs — including fuel, insurance, vehicle maintenance, and labor — all translate into higher fares. Washington fuel prices alone have jumped $0.48 per gallon thanks to the state’s Climate Commitment Act, passed by the Democrat-controlled legislature. As of July 1, fuel costs have risen again due to a new $0.06 per gallon gas tax increase, making Washington the only state in the country where gas prices are higher in 2025 than they were in 2024.

Adding to the price pressure are Seattle's frequent large-scale events and challenging urban layout, both of which often trigger Uber’s surge pricing. Local labor laws — including minimum pay rules for ride-hail drivers — have also been cited by Uber as a major factor behind fare increases, particularly in cities like Seattle and New York.

While the rest of the US has seen gas prices stabilize or drop compared to last year, Washington is the only state where gasoline prices are higher than they were at this time in 2024. The new gas tax increase that took effect on July 1 added another 6 cents per gallon to regular fuel and 3 cents to diesel. Additional increases tied to inflation are expected in the coming years.

Washington’s Climate Commitment Act (CCA), a cap-and-trade emissions program launched under Governor Jay Inslee, is also playing a growing role in rising fuel costs. The system forces businesses to buy pollution “allowances” through quarterly state auctions. Over time, fewer allowances are available, raising their price and ultimately, the cost of fuel for consumers.

“You are literally the only state that is above where it was one year ago,” Patrick De Haan, head of petroleum analysis at GasBuddy, told The Center Square.