A local ordinance created to help Uber Eats delivery workers is backfiring.

In order to increase the salaries of food delivery workers like Uber Eats and Doordash, the city of Seattle created an ordinance stipulating a minimum wage, and food delivery services began charging fees accordingly. It turns out that the number of users is decreasing, and as a result, the salaries of delivery workers are decreasing.

'It's definitely backfiring': Seattle ordinance intended to help app delivery workers is 'hurting' them | king5.com

With the rapid growth of app-based forms of employment such as food delivery, pet sitting, and shopping services, the Seattle City Council The Raise the Wage Act was the brainchild of Congressmen Lisa Herbold and Andrew Lewis.

PayUp Legislation - Council | seattle.gov

The mechanism is simple: the minimum wage is guaranteed to be paid by the minute or by the mileage, depending on the number of hours required to fulfill each order.

Additionally, companies are required to provide information to workers to ensure compliance with minimum wage requirements, and to provide customers with information such as wages being paid and amounts retained by the company. You will be asked for it.

The bill was passed on May 1, 2022 and will come into force from December 2023.

However, it has become clear that the Wage Increase Act, which was thought to help improve wages for delivery workers working on apps, is actually having a negative impact.

According to delivery workers, the amount of orders has been decreasing since January 2024, even in places called 'hot spots' where orders were once concentrated.

Delivery service Doordash estimated that delivery workers' hourly wages would rise to at least $26.4 (about 3,900 yen) under the Wage Increase Act. However, in reality, the delivery worker's salary, which was earning $931 (about 138,000 yen) a week before the law came into force, has decreased to $464.81 (about 69,000 yen).

One reason may be that after the Wage Increase Act went into effect, Uber Eats and Doordash started charging a $5 (approximately 740 yen) fee when ordering, and dissatisfied users stopped using the app. It is expected.

'If you work non-stop, you might make $26.40 an hour, but people aren't ordering as much anymore, so your wages are going to go down,' delivery worker Mia Shagen told local TV station KING5. He is said to have spoken.