Last month at our Gigonomics Lunch-and-Learn Series we reviewed the new City of Seattle “PayUp” law. This law establishes an app-based worker minimum payment standard per offer you receive from your non-rideshare apps like UberEats, DoorDash, AmazonFlex, etc.  Also, it enacts a series of app-based worker rights on issues like flexibility, tipping, up-front offer information, and fraudulent use.  To learn more about the details you can watch a recording of last month’s presentation here.

This new law has not been without controversy.  Since its January 13, 2024, effective date there have been significant changes to how the apps operate both for consumers and app-based workers. To be clear, none of this new law effects the rideshare apps, so if you only work rideshare, feel free to read on knowing none of this concerns your work.

Since January 13, Drive Forward has been asking our members to give us feedback on how these changes have affected you and we’ve heard a few common themes. Here is what you told us:

I went from making $300 a day during the weekends to making $80 a day and that’s on a good day. It takes over 2hr to even get one order. -Marvin (DoorDash)

This is my full-time work and I am not receiving enough orders to make a living. My earnings have been cut in half. -Andrea (UberEats & DoorDash)

It’s bad! Everyone is working now because the pay is high but that means I work less. It doesn’t make sense! -Matt (Shipt, DoorDash, & UberEats)

So, I know that it’s kind of unpopular among the door Dashers and the Instacart people but it’s working out really well for me. [With the way AmazonFlex works] it sometimes doubles the amount that I make on a shift if I work within the Seattle limits. -Terry (Amazon Flex)     

90% of the customers don’t tip since the app changed. So, they have to go back onto the app after the delivery, if they even remember to do so, in order to tip. That’s a big thumbs down. -Sally

The themes we’ve heard again and again from our members are fewer offers, fewer and lower tips, and more drivers on the road – all contributing to a drastic reduction in earnings.  The reduced earnings are so extreme, a few members told us they are worried about making rent payments.  This law was supposed to boost driver pay according to its proponents, not boost homelessness.

To be fair, if you work on an app that has a shift or batches deliveries, this law has worked great, your pay has risen to $26.40/hr. plus mileage.  However, the on-demand delivery market seems to have collapsed under the weight of the cost increases.  We know the three largest players in the market, DoorDash, Instacart, and UberEats, have not only changed how consumers tip on the app but have also added a $4.99 “Seattle Regulatory Fee” to every on-demand order.

We warned policymakers, back when this law was still being negotiated, that the companies would pass the costs on to consumers.  The Councilmembers authoring this law, Andrew Lewis and Lisa Herbold, responded that companies could just “eat” the cost.  Well, it seems we understood market capitalism better than Lewis and Herbold did because exactly what we said would happen happened. Thankfully neither Lewis nor Herbold are on the City Council anymore.

But we have a new City Council, so Drive Forward is taking new action to address these problems for you!

We have already started discussions with all the stakeholders, including City Council President Sara Nelson, representatives from the mayor’s office, some of the app companies, and organized labor.  In these discussions we have shared your stories and have told them urgent action is needed to fix this law.

Here’s how you can help!

We have begun a survey of app-based workers in Seattle to gather real data to validate the stories our members have told.  The survey will be open for another week. If you have not taken it yet, please do so, and please share it on social media and with other drivers you know.  The more people who respond to the survey, the stronger our case for change is. If you are a member that has been affected by this law, we want to hear your story.

Our March 21, 2024, Gigonomics Lunch-and-Learn, will be a must-attend event for anyone who works on-demand delivery.

By then we will have results from our survey and likely be formulating policy changes to suggest to the Council President Nelson. Go to our events page to RSVP for this meeting.

We are looking to get swift action from the City Council.  If you are struggling out there on the road, please know we are working very hard to fix this law as fast as possible!