Seattle to reduce minimum pay for app-based delivery drivers after increased wages reduced demand

The law, which went into effect last January, required delivery workers to earn $26.40 per hour plus mileage before tips. However, many workers have complained that the law's intentions have backfired, resulting in fewer customers placing orders due to increased labor costs, according to KOMO News.

In response, the Seattle City Council committee has voted to revise the current law, reducing the minimum wage to $20 per hour plus 35 cents per mile. The revised law must now go before the full council for a vote before it can officially go into effect. Initially scheduled for a vote on May 28, the decision has been delayed and remains controversial.

Drive Forward Seattle, a nonprofit founded by gig workers that has spoken out against the wage increase, argues that it has caused prices to rise.

“We were originally hoping this would have been done the first week in May, so we’re getting close to two months behind from our viewpoint,” said Michael Wolfe, the nonprofit's executive director.

Delivery drivers have also voiced their concerns about the negative impact of the original law.

“A lot of people were happy with the pay they got and everything was working good, but now that they only get one delivery a day or two deliveries a day, that really cuts into their income," said Eric Franklin, a delivery driver who spoke to KOMO News.

Since the wage increase in the city, companies like DoorDash have added a $5 fee for every order in Seattle to offset the rise in operating costs. A GrubHub spokesperson told KOMO News, “Seattle’s extreme pay ordinance was flawed from the start.”

“We applaud the City Council for working swiftly to fix the law and make it work better for drivers, restaurants, and diners in their city,” the company added.