SEATTLE — Amazon said it's not planning on creating a new fee for deliveries in Seattle after a controversial ordinance giving drivers a minimum wage went into effect Saturday.
The new ordinance stirred up controversy, with critics claiming it will make delivery services more expensive. Supporters said it will help provide a livable wage for drivers.
The ordinance, originally passed in May 2022, requires delivery apps to provide a minimum payment for mileage and time worked. The ordinance applies to all app-based workers who work at a network company that hires more than 250 workers worldwide. For example, DoorDash said dashers in Seattle will earn at least $26.40 an hour before tips plus mileage.
The ordinance also affects Amazon's Flex drivers, who are contracted delivery drivers using personal vehicles, similar to DoorDash and Uber.
Amazon said they don't anticipate any impact on customers at this time. Other app-based delivery services like DoorDash, Uber, and Instacart have all implemented new fees.
An Uber spokesperson said, "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.”
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.