Uber’s orders decline due to two Seattle gig laws
UberEats and Doordash Experience Decrease in Orders in Seattle
New data from Uber reveals concerning effects of Seattle’s app-based worker laws on couriers. Since the implementation of the App-Based Worker Minimum Payment Ordinance and the App-Based Worker Paid Sick and Safe Time Ordinance on Jan. 13, UberEats has seen a significant 30% decrease in order volumes in Seattle.
This aligns with Doordash’s latest data, which shows that consumers have placed 30,000 fewer orders on the DoorDash Marketplace in just over two weeks since the pay regulations were launched.
Furthermore, Uber’s data indicates that delivery drivers now spend an average of 30% more time waiting for delivery requests compared to before the ordinances were put into effect.
“We don’t see a similar shift for couriers in other U.S. markets,” Uber stated in a blog post on Medium on Feb. 23. “As a result, Seattle courier earnings during all hours online are flat to slightly down, albeit over a small sample period.”
Previously, The Center Square reported on app-based workers in Seattle waiting for eight or more hours for an order to come in. Some delivery drivers even mentioned receiving only two orders within an entire eight-hour day.
One worker shared their experience of waiting three hours before receiving their first order while working on a weekday in Downtown Seattle.
The significant drop in orders is a direct response to the two ordinances aimed at ensuring fair wages for app-based delivery drivers in Seattle.
Details of the App-Based Worker Minimum Payment Ordinance and the App-Based Worker Paid Sick and Safe Time Ordinance
The App-Based Worker Minimum Payment Ordinance requires network companies to pay couriers the greater of either a minimum per-minute amount of 44 cents or a minimum per-mile amount of 74 cents. Alternatively, they can pay a minimum per-offer amount of $5.
On the other hand, the App-Based Worker Paid Sick and Safe Time Ordinance allows app-based workers to accumulate one day of paid sick and safe time for every 30 days with at least one work-related stop in Seattle. This includes activities such as shopping at a store or making a delivery within the city limits.
According to Tammie Hetrick, CEO of the Washington Food Industry, digital sales for independent grocers have dropped by approximately 10-12%.
“The data is clear: this ordinance is not working – in fact, it’s having a detrimental effect on businesses, workers, and customers – especially those who depend on delivery for health and safety reasons,” Hetrick stated in a press release from the Washington Alliance for Innovation and Independent Work.
The Seattle City Council has recently discussed the possibility of repealing these two gig laws, indicating a potential path forward.
Are the negative effects of the regulations in Seattle unique to this market, or are other cities experiencing similar impacts
Economies have been negatively impacted by these new regulations.”
The App-Based Worker Minimum Payment Ordinance in Seattle requires platform companies like UberEats and Doordash to pay drivers a minimum wage that includes expenses, such as gas and vehicle maintenance. Additionally, the App-Based Worker Paid Sick and Safe Time Ordinance mandates that gig workers receive paid sick and safe time off. While these regulations were put in place to protect the rights and welfare of app-based workers, they seem to be having unintended consequences.
UberEats and Doordash, two of the leading food delivery platforms in Seattle, have both experienced substantial declines in order volumes since the implementation of these ordinances. UberEats has reported a 30% decrease in orders, while Doordash has seen a decline of 30,000 orders on their marketplace. These numbers are alarming and suggest that consumers may be deterred from using these services due to the increased costs associated with the new regulations.
One of the most significant impacts of the regulations is the increased waiting time for delivery drivers. According to Uber’s data, drivers now spend 30% more time waiting for delivery requests compared to before the ordinances were enforced. This increase in waiting time not only affects the efficiency of the delivery process but also the overall earnings of drivers. The longer they have to wait, the less time they have available to complete deliveries and earn income.
It is important to note that these negative effects are specific to the Seattle market. According to Uber’s blog post, there has been no similar shift in other U.S. markets. This suggests that the regulations in Seattle may be overly burdensome or not well-suited to the gig economy model. While it is crucial to protect the rights of app-based workers, it is equally important to consider the potential unintended consequences of such regulations.
Seattle’s experience serves as a case study for other cities and jurisdictions considering similar regulations. The decline in order volumes and increased waiting times for drivers highlight the need for a balanced approach that considers the interests of both workers and platform companies. Striking the right balance will ensure the sustainability of the gig economy and the availability of convenient services for consumers.
In conclusion, the introduction of the App-Based Worker Minimum Payment Ordinance and the App-Based Worker Paid Sick and Safe Time Ordinance in Seattle has had a significant impact on the operations of UberEats and Doordash. Order volumes have decreased, and drivers now spend more time waiting for delivery requests. These effects are specific to the Seattle market and raise concerns about the viability of such regulations in the gig economy. It is essential to carefully consider the potential consequences before implementing similar regulations in other jurisdictions.
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