DoorDash Blames Seattle's Extreme Regulations for Higher Delivery Fees and Lower Earnings

Reuters
08 Jul
DoorDash Blames Seattle's Extreme Regulations for Higher Delivery Fees and Lower Earnings

DoorDash Inc. has voiced strong opposition to new costly regulations imposed by Seattle, which require platforms to pay delivery workers nearly $30 an hour before mileage and tips, far exceeding the city's minimum wage. The company has announced that starting this month, service fees for deliveries in Seattle will increase, as DoorDash has been operating at a loss in the city. These regulations, which also include an extensive review process for Dasher deactivations, have made Seattle the most expensive market for delivery services in the U.S. According to DoorDash, these policies have resulted in lower earnings for Dashers, fewer orders for local businesses, and an overall more expensive experience for consumers. Additionally, Dashers in Seattle are reportedly taking home less pay, as they receive fewer delivery offers and face longer wait times for potential deliveries. The company, along with advocates, continues to oppose these policies, citing negative impacts on Seattle's local businesses, workers, and consumers.

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