SEATTLE — A new Seattle ordinance that started Saturday is stirring up controversy. Supporters say it will help provide a livable wage for app-based delivery drivers, the ones who bring you take-out and groceries. However, critics say it is going to make those services more expensive.
When debating delivery or pickup, the fees factor in for Elena Thompson.
"The price that they charge for the delivery, it's like the price of a full meal already," said Thompson.
At Bok a Bok Fried Chicken, they expect delivery costs to climb because of the new city ordinance.
"The greatest concern on the restaurant side is just more fees. This particular fee is to help benefit the drivers who 100 percent deserve a living wage,” said Jaclyn Wagner, the director of operations at Bok a Bok Fried Chicken.
"Local restaurants like mine and so many others rely on gig workers and rely on third-party apps, and additional fees like this could potentially harm our businesses. We won't really know until it actually starts happening," Wagner added.
In a 2022 video, an advocate calling for new protections for app-based workers said, "when the workers who deliver food can afford to buy their own groceries and go out to eat at restaurants it means a healthier community for all of us."
Seattle City Council passed legislation that goes into effect Saturday. It will require delivery apps to provide a minimum payment for mileage and time worked. The ordinance will apply to all app-based workers who work at a network company that hires more than 250 workers worldwide.
In a response to the council decision, an Uber spokesperson says, "unfortunately, this one more than doubles the fees consumers will have to pay which means fewer orders for businesses, and less opportunities for delivery workers."
DoorDash said in a statement, “Unfortunately, we expect this will lead to lost revenue for local businesses and fewer earning opportunities for the very workers the regulations are supposed to help.”
DoorDash said dashers in Seattle will earn at least $26.40 an hour before tips plus mileage. The company said that in the coming days people in Seattle ordering from DoorDash will see new fees at checkout to cover the cost of the new regulations and said to balance the impact its reducing the suggested tip amount on each order.
"It makes no sense for anybody -- for the workers, for the users, and for all of us in Seattle. It makes no sense,” said Marcos Wanless with the Seattle Latino Metropolitan Chamber of Commerce. "Are all those people going to still order because it is more expensive? No, they are going to order less."
The city says the ordinance is about ensuring gig economy workers receive minimum wage on par with other workers in Seattle. The council also approved an ordinance to give app-based workers paid sick and safe time.
On the other hand, it’s a good day in Seattle for gig workers like Wei Lin because now that the city’s new ordinance is in effect, it ensures a stable minimum wage on par with other workers in Seattle.
“We actually work more and get paid less and we do not see the tip. There’s no transparency,” Lin said.
Lin said since the pandemic, he saw his pay per order drop, but that all changing for an estimated 40,000 gig workers in Seattle.
“The floor pay helps a lot, and does a lot. The Seattle ordinance helps so much,” said Lin. "We are not trying to make the cost more for the customer, we don’t have the power to do that, it’s the companies. We just want fair pay."