By Kiara Doyal | seattlemedium.com

A comprehensive compromise bill awaits a vote as Seattle’s app-based workers and restaurant owners sit on the steps of Seattle City Hall, urging councilmembers Joy Hollingsworth and Cathy Moore to accept a compromise measure revising the Delivery Pay Ordinance and stem the losses associated with the new law. Seattle’s PayUp ordinance, which went into effect on January 13, 2023, requires large app-based delivery companies, like UberEATS and DoorDash, to pay drivers a minimum wage. The ordinance mandates that drivers are to be paid at least $0.44 per minute, $0.74 per mile, and $5 per delivery offer.

Michael Wolfe, Executive Director of Drive Forward Seattle, a nonprofit organization that supports gig workers, app-based workers, and local restaurant owners are frustrated about the failing Delivery Pay Ordinance and the effects that it is having on the income of Seattle residents, like themselves.

“Councilmembers Hollingsworth and Moore are out of touch with the people of Seattle by refusing to support this common-sense compromise to help workers, local restaurants, and increase affordability in Seattle,” says Wolfe. “As a result, app-based workers keep losing out on delivery orders, restaurants and other businesses are losing revenue, and customers are losing faith in the council to negotiate a compromise.”

William McCullough, an app-based worker who has been delivering for UberEats in Seattle for six years, shared that a fix is needed to move forward and restore app-based delivery in the city.

“Prior to the implementation of the PayUp law, I was able to support myself solely by being an Uber Eats delivery driver,” says McCullough. “Since then, my Uber Eats income has dropped by over 50 percent and I have had to take on an additional part-time job to pay my bills. The city council needs to take action now to repeal the payout law.”

The council met Tuesday but again failed to hold a full vote on a new proposal crafted with input from a broad range of stakeholders, including workers themselves. Drive Forward Seattle’s primary mission involves education, training, networking programming, and advocacy work, and the organization has been actively involved in the debate around pay for delivery workers. Despite extensive efforts, Wolfe feels that getting council members to compromise has been challenging.

“When the negotiations for the existing law were first going on a couple of years ago, it was very much driven by one organization,” says Wolfe. “Working Washington, the company sponsoring the legislation ran the meetings, and there was no real compromise, there was no real discussion, there was no real collaboration. Basically, they were telling us this is what was going to happen.”

Despite warnings that the proposed law would lead to increased costs and decreased demand, the legislation was passed. The consequences have been significant, with higher costs to restaurants and consumers leading to reduced use of the apps, decreased restaurant revenues, and fewer orders for workers.

“Uber has reported that 30% of their delivery drivers have left their platform because there is no work,” Wolfe noted.

Since January, the implementation of the law has reportedly led to $35 million in lost restaurant revenue, affecting city revenue as well, given that such income is taxable. This has contributed to the city’s budget deficit.

“The poorly executed legislation is failing not only the workers it is supposed to help but also the restaurants and their employees. We are now close to roughly a dozen restaurants that have closed because of this,” said Wolfe.

Sanjay Sharma, Owner of Masala of Indian Cuisine, claims that his business has been negatively impacted by the ordinance.

“Small businesses like mine are still losing money. It has been like this since the law took effect in January, and I feel like the council is doing nothing to help restaurants in this city,” says Sharma.

To address these issues, Drive Forward Seattle proposes reducing the minimum wage per minute from 130% to 110% and providing a $0.35 per mile reimbursement for vehicle expenses. Wolfe believes that these adjustments, along with the removal of additional fees by delivery companies, will help restore demand and increase overall earnings for workers.

“We are hopeful that by making these changes, workers are still going to get paid over minimum wage, they are going to get a reasonable reimbursement, and there is going to be more orders because prices are going to come down, which is a unique thing in Seattle because we are so used to prices always going up,” says Wolfe. “This would spur extra growth in the use of these apps, and if that is the case, what we have proposed in terms of paying workers higher than what they were being paid prior to January, they would see an increase in overall earnings.”

“This is important to Drive Forward and our members because we want to make sure that no one is falling through any cracks. So, we absolutely support the creation of an earning standard, and we want to make sure that the earning standard isn’t put in place such as the one that is currently in place that kills demand and therefore harms workers by there just simply not being enough work,” he continued.

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About the WA Alliance for Innovation and Independent Work
WA Alliance for Innovation and Independent Work is a coalition of consumers, independent workers, small businesses, app-based services, and community leaders from across the state that seeks to strengthen and support advancements in the new workplace. Today, flexible jobs, benefits, and innovative services are essential to enhancing Washington’s emerging economic opportunities and empowering the small businesses and workers who are leading and innovating.