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Seattle's minimum pay ordinance hurting delivery drivers it meant to help
Fox News via Yahoo ^ | February 14, 2024 | Eric Revell

Posted on 02/14/2024 4:54:58 PM PST by grundle

The Seattle City Council’s recently implemented minimum payment ordinance for app-based workers like those who work handling deliveries through apps such as DoorDash, Uber Eats and Instacart is hurting the workers it intended to help.

In 2022, the Seattle City Council enacted a first-of-its-kind ordinance that aimed to help ensure that app-based delivery drivers earn a minimum wage plus tips and compensation for expenses. That law took effect last month and effectively requires companies to pay the greater of a minimum per-minute amount of $0.44 and a minimum per-mile amount of $0.74, or a minimum per-offer amount of $5.

In practice, this has prompted companies like DoorDash and Instacart to pay their independent contractor delivery drivers $26 or more per hour to comply with the regulation and cover their costs. That amount is well above the city of Seattle’s regular minimum wage of $19.97 per hour and has forced those companies to pass some of those costs on to consumers placing orders.

Gary Lardizabal, who lives in Seattle and has made deliveries through Uber since 2016, told FOX Business that the delivery business has fallen off dramatically since the first week of the ordinance’s implementation as consumers balk at higher prices for orders.

"My experience in downtown Seattle, which is booming with Amazon and other tech workers, wait times are half the day," Lardizabal said in an interview. "There’s reduced orders for drivers and couriers… and there’s definitely reduced business for restaurants."

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Miscellaneous
KEYWORDS: seattle
The only people who are surprised by this are the ones who don't understand Economics 101.
1 posted on 02/14/2024 4:54:58 PM PST by grundle
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To: grundle

I generally don’t like voting for someone who has had no
private sector experience, almost exclusively in ownership
or top level management, where they have to deal with
profitability.

Attorneys, a dead set no.


2 posted on 02/14/2024 4:59:07 PM PST by DoughtyOne (I pledge allegiance to the flag of the USofA & to the Constitutional REPUBLIC for which it stands.)
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To: grundle

Exactly. Democrats can’t do math.


3 posted on 02/14/2024 5:01:32 PM PST by Allegra (Less propaganda would be appreciated. )
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To: grundle

Apparently a lot of the Gig Gang, who almost certainly voted for the surcharge, thought they’d get rich by it, and so moved their operations to Seattle.

I guess they learned their first lesson in economics, which is the concept of “Elastic Demand”. LOL!!!!!


4 posted on 02/14/2024 5:12:36 PM PST by BobL (Trump gets my vote, even if I have to write him in; Millions of others will do the same)
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To: grundle

1. Try to make people pay more for something than they think it’s worth.
2. Be baffled when people quit buying that thing.


5 posted on 02/14/2024 5:14:49 PM PST by HartleyMBaldwin
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To: grundle

When robots demand a raise, then that is a problem.


6 posted on 02/14/2024 5:16:34 PM PST by Mark (DONATE ONCE every 3 months-is that a big deal?)
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To: Mark

We could get $20 an hour if we could get a job.

New twist to the If we had some eggs we could have bacon and eggs for breakfast if we had some bacon.


7 posted on 02/14/2024 5:25:41 PM PST by oldasrocks
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To: grundle

Democrats have no clue on what it takes to run a business.


8 posted on 02/14/2024 5:43:54 PM PST by From The Deer Stand
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To: grundle

RATS aren’t smart enough to understand the business model of a lemonade stand...


9 posted on 02/14/2024 5:49:50 PM PST by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
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To: grundle

Channeling Dr. Thomas Sowell, how much money per hour does an unemployed person make?


10 posted on 02/14/2024 5:59:54 PM PST by Mean Daddy (Every time Hillary lies, a demon gets its wings. - Windflier)
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To: grundle

It was NEVER meant to help.


11 posted on 02/14/2024 6:02:17 PM PST by mewzilla (Never give up; never surrender!)
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To: grundle

Really? That’s funny. They meant well!Hahahahahaha bunch of assholeshahagha


12 posted on 02/14/2024 6:06:54 PM PST by albie
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To: grundle

Idiots


13 posted on 02/14/2024 6:54:38 PM PST by Dave911
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To: grundle

When they discover that the real minimum wage is zero.


14 posted on 02/14/2024 6:55:41 PM PST by MV=PY (The Magic Question: Who's paying for it?)
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To: grundle

The Seattle folks deserve this, “hurting,” because that is who they are...

My son’s high school friend, an executive with Nike, answered this question, “why is Nike backing BLM and like radical movements?, with, “ That is who we are!”

Talk about the chickens coming home to roost! He is, no longer with Nike.

SWOOSH!


15 posted on 02/14/2024 7:59:26 PM PST by BatGuano (2020 = Stolen Election. Believe it! Molon Labe.)
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To: oldasrocks

I could row across the lake instead of swim-—etc


16 posted on 02/15/2024 4:23:37 AM PST by ridesthemiles
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To: grundle

Indeed California gave fast food greasy food joints workers $20.00 an hour.


17 posted on 02/15/2024 8:42:38 AM PST by Vaduz
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