DoorDash Raises Delivery Fees in Seattle Amid Costly Labor Rules

DoorDash is raising service fees on all deliveries in Seattle once again, citing the city’s stringent regulations that require paying delivery drivers nearly $30 an hour before mileage and tips, which is significantly higher than Seattle's minimum wage. These regulations, including the 2022 PayUp law and the 2023 App-Based Worker Deactivation Rights Ordinance, have led to increased operating costs, delivery delays up by 35%, and fewer orders, causing DoorDash to operate at a loss in Seattle despite generating billions in revenue nationwide. Seattle customers now pay more than twice the delivery fees compared to cities like Denver, San Francisco, and Portland, making it the most expensive market for DoorDash in the U.S. Local businesses have experienced a decrease in revenue, with some reporting up to a 30% loss in delivery sales, while drivers report reduced earnings and work opportunities due to fewer orders. DoorDash argues that these policies, intended to protect gig workers, have instead harmed them and the local economy by driving up costs and stifling innovation. Seattle city officials continue to enforce these regulations to safeguard workers, but the conflict highlights the challenges of balancing fair wages with affordable delivery services.