SEATTLE — To try to motivate apps like Doordash and Uber Eats to reduce or remove their recently added $5 local operating fee, the Seattle City Council is considering changing an ordinance that KING 5 has extensively reported on.
After Seattle's minimum wage ordinance for gig workers went into effect in mid-January, the food delivery apps started charging customers the new fee to "offset" their added costs under the ordinance.
Council President Sara Nelson said their briefing would be, "followed by a presentation of a proposal that was brought forward by drivers, and with feedback from network companies to resolve the catastrophic impact on drivers, restaurants, and customers that we've been hearing about since implementation."
Apps like Doordash made other changes as well.
"In order to better balance the impact of these new costs and provide the best experience for consumers, we’re also reducing the suggested tip amounts on each order," Doordash wrote.
However, these actions have resulted in numerous frustrations for customers, restaurants, and even delivery drivers themselves.
The Seattle City Council broke its silence about the topic Monday, announcing its plan to review a proposal by drivers and apps on Thursday to lessen the negative effects of the new ordinance.
Nelson said, "So that is finally coming to committee."
It is still unclear what type of action the council will take on it or whether it will appease the apps.
"The main elements of the proposal will be explained," Nelson said. And spoiler alert: Recent reporting aside, the proposal requires that drivers be paid at least Seattle's minimum wage per hour plus a per-mile amount. So you'll hear more about that this Thursday."
Doordash sent KING 5 a statement in response, which reads, “Our message to the council is the same as the message we’re overwhelmingly hearing from Dashers, businesses, and consumers in Seattle–it’s time to fix this broken law. The regulatory response fee in Seattle helps offset the costs associated with this law. If those costs can be decreased, we will explore all options to increase affordability for consumers, including a reduction of the fee.”
Nelson said she is putting this item first on their Governance, Accountability & Economic Development Committee agenda because she anticipates a showing of people to give public comment and doesn't want those people to have to wait around for this agenda item.
KING 5 checked in with local stakeholders ahead of the committee review.
Now, 10 weeks after implementation, Il Villaggio Magnolia owner Jeffrey Stern said his pizzeria is still experiencing slower app delivery sales.
"Dropped approximately 35 to 40%," he said. "I hope that they rescind it, ya know? Let the drivers make money off of gratuities. $5 is not making up for the loss of business."
However, he said the local community has kindly supported him since his appearance on KING 5 News.
"This was very heartwarming to see... The other day, a couple came in from Kent, and I thought they were in the area for other businesses, and, 'Oh, no, we came in to support you. Plus, we heard that the food's really good... and because we saw the segment on the news,'" he said.