MYNORTHWEST NEWS

Seattle mulls first-of-its-kind minimum wage for app-based delivery drivers

Feb 9, 2022, 7:38 AM | Updated: 8:46 am

Delivery drivers...

(Getty Images)

(Getty Images)

A first-of-its-kind proposal nearly a year in the making would look to increase compensation for app-based delivery drivers in Seattle, with councilmembers discussing its latest iteration on Tuesday.

Rideshare companies pour millions into PAC ahead of push for ballot initiative

The proposed legislation — known formally as “Pay Up” — would build on a bill passed by the council in 2020, which established a $16.39 an hour minimum wage for rideshare drivers, paying out $0.56 per minute and $1.33 per mile driven while transporting passengers. In practice, this new bill would set a $17.27 an hour minimum wage for app-based delivery and service drivers for companies like Instacart, Uber Eats, Rover, and more, while helping cover baseline expenses.

According to a recent study done in San Francisco, it’s estimated that app-based delivery drivers make as little as $6 an hour, without accounting for expenses that are largely paid out of pocket. Other cities have passed legislation similar to what Seattle approved for rideshare drivers in 2020, but according to Seattle council staff, no such protections have been afforded to delivery drivers in any other city.

“This would be the widest breadth of app-based workers covered by local legislation,” council staff analyst Karina Bull said during a Tuesday committee meeting.

The hope from councilmembers who have been refining the draft legislation since early 2021 is to “make sure that this emergent field of work isn’t treated differently than traditionally waged work,” Councilmember Andrew Lewis described.

That was a sentiment echoed by delivery drivers in public comment as well.

“I joined the Pay Up campaign because I see the lack of respect from gig economy apps for the independent contractors who bear all the expense for doing business,” said Handy worker Terri.

“In the 30 years I’ve worked in the service industry, I’ve never struggled this much as a worker as I do on DoorDash,” said DoorDash driver Michael.

Others within the council’s more moderate bloc expressed hesitation regarding the lack of precedent, as well as the potential downstream effect it will likely have in the form of increased costs for consumers. As Councilmember Sara Nelson pointed out, that’s also what happened following the passage of its rideshare driver minimum wage ordinance.

“These platforms have shifted from a convenience to a necessity,” she noted. “We know that (rideshare minimum wage) increased the cost of a ride by 50%, which has made rideshare too expensive for some riders that rely on it — drivers now make upwards of 160% of Seattle minimum wage and they’ve seen a decline in demand for rides.”

As Bull pointed out, that expectation of increased consumer costs is built into the legislation, in hopes of encouraging more well-paid full-time work.

“Built into our legislation is the expectation that companies might take measures to reduce work opportunities for workers so that there are fewer workers available for work, promoting more full-time work,” she described. “What you’re describing happening with (rideshares) was expected.”

Some Seattle rideshare drivers worried Durkan proposal could limit flexibility

“The same sorts of arguments are in place for the minimum wage as well,” Bull added. “Certainly Seattle has been doing well since the minimum wage went into place.”

Despite a lack of existing precedent to cite, Lewis further detailed how the temporary caps on fees imposed on restaurants by delivery apps — as well as grocery store worker hazard pay — could provide some helpful data to draw from as well.

“We can look to to see how that has affected the market,” he posited. “Between those two points, I think that this is a good part of our process to check in on what that effect and impact has been. I don’t believe that any of those platforms have left our market or considerably altered the way that they operate in response to either of those interventions.”

“What you did with capping the delivery fee really did help those restaurants,” Nelson agreed. “And at the same time, I have no idea how that impacted the workers. It’s really quite complicated and hard to weigh the impacts across the board.”

Moving forward, Lewis says the plan is to continue meeting with stakeholders to “refine the legislation and craft a policy that works for businesses, including the restaurants providing the substance of the deliveries, and also provide workers with the protections and benefits that similarly situated workers who do non-gig work enjoy.”

MyNorthwest News

light rail stabbing pioneer square...

Frank Lenzi

Stabbing victim boards Sound Transit light rail train in Seattle’s Pioneer Square

A person was stabbed in Seattle's Pioneer Square neighborhood late Sunday afternoon and then boarded a northbound Sound Transit light rail train before first responders could intervene, the agency said.

11 hours ago

Andre Sayles (2) bite of seattle shooting suspect...

Tom Brock

Texts on hold: SPD delays Bite of Seattle shooting records

Interim Seattle Police Chief Andre Sayles says he needs more time before he can release the police department's internal communications the night of the deadly "Bite of Seattle" shootings.

15 hours ago

A Coast Guard rescue helicopter lifts an injured hiker to safety from Oregon's Three Sisters Wilder...

Tom Brock

Hoist in the high Cascades: Coast Guard lifts injured hiker from treacherous Oregon mountaintop

A Coast Guard helicopter crew rescued an injured hiker from treacherous conditions in the mountains of central Oregon last week.

18 hours ago

Two alleged wire thieves caught in the act on Highway 12 near Aberdeen. Authorities estimate they d...

Tom Brock

Grounded: Grays Harbor deputies cut short highway wire heist

Deputies in Grays Harbor arrested two men Saturday for trying to steal hundreds of feet of wire along Highway 12.

19 hours ago

Mount Rainier...

425

Why interest in this Mount Rainier-sighting app is surging

A community-driven app that tracks Mount Rainier’s visibility is gaining attention.

24 hours ago

Katie Wilson (8)...

Luke Duecy

The Spin: How Seattle Mayor Katie Wilson’s team communicates after gun violence

Four deadly shootings in a little more than a month, including the Bite of Seattle shooting and three fatal shootings in Belltown, provide a backdrop for examining how Seattle Mayor Katie Wilson’s communications team handles difficult news. In this edition of “The Spin,” KIRO Newsradio reporter Luke Duecy looks at two recent examples and the […]

2 days ago

Seattle mulls first-of-its-kind minimum wage for app-based delivery drivers