Seattle's Minimum Wage Experiment Disappoints
An ordinance mandating a minimum earnings floor for app-based food delivery drivers in Seattle has led to a sharp decrease in food orders and driver earnings. The law, which went into effect in January 2024, aimed to protect gig workers but has resulted in customers abandoning delivery apps due to increased costs, and consequently, drivers experiencing a significant reduction in pay. Despite the intentions behind the policy, it has adversely affected local businesses, delivery drivers, and vulnerable populations relying on delivery services. Seattle's City Council appears reluctant to revise the legislation despite the negative outcomes.
- The demand for food delivery in Seattle has plummeted, with companies like Uber Eats seeing a 30-percent order reduction and drivers' earnings halving compared to the previous year.
- Additional costs to cover the ordinance, including a proposed 10-cent per-delivery fee set for 2025, predict continued challenges for delivery customers, drivers, and local restaurants.
https://reason.com/2024/03/16/seattle-law-mandating-higher-delivery-driver-pay-is-a-disaster/
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2024-03-17 02:34:50
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npub1dwegu7taqadap2pzw6dszulc6r7gwmldawjpdrersuykxxlyzfeskds9g9Published at
2024-03-17 02:34:50Event JSON
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"content": "Seattle's Minimum Wage Experiment Disappoints \n\nAn ordinance mandating a minimum earnings floor for app-based food delivery drivers in Seattle has led to a sharp decrease in food orders and driver earnings. The law, which went into effect in January 2024, aimed to protect gig workers but has resulted in customers abandoning delivery apps due to increased costs, and consequently, drivers experiencing a significant reduction in pay. Despite the intentions behind the policy, it has adversely affected local businesses, delivery drivers, and vulnerable populations relying on delivery services. Seattle's City Council appears reluctant to revise the legislation despite the negative outcomes.\n\n - The demand for food delivery in Seattle has plummeted, with companies like Uber Eats seeing a 30-percent order reduction and drivers' earnings halving compared to the previous year.\n\n - Additional costs to cover the ordinance, including a proposed 10-cent per-delivery fee set for 2025, predict continued challenges for delivery customers, drivers, and local restaurants.\n\nhttps://reason.com/2024/03/16/seattle-law-mandating-higher-delivery-driver-pay-is-a-disaster/",
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