Seattle raises delivery workers minimum pay with totally predicable results

[stevebec]

The long waits between orders only began after Jan. 13, 2024, when Seattle enacted an ordinance that boosted the minimum wage for delivery-app drivers. While the ordinance was meant to protect gig workers who rely on the income they earn from making deliveries plus tips, app-based companies didn’t just absorb those costs. Instead, they rolled them into the fees customers pay for service, and if you talk to them and drivers like Illes, there was a catastrophic drop-off in business.

https://finance.yahoo.com/news/meet-...110000497.html

[Godfrd824]

Liberals simply don't understand cause and effect.

They want a simple solution to things that are very complex. They will try anything that doesn't require any effort, regardless of how much of your money it may cost.

[mchabs]

Lol

[Sal29]

https://finance.yahoo.com/news/meet-...110000497.html

Doordash takes like an 80% to 90% cut and drivers get a 10% to 20% cut. If this Seattle Law was a national law, then Doordash would be forced to lower its cut to 20% or go out of business. The fact that it's only Seattle has this law allows Doordash to artificially keep its cut at 80 to 90%.
Costco takes LESS than a 15% cut on everything and they have WAY more expenses than Doordash and are incredibly successful.
Costco has INCREDIBLY LOW turnover among employees while Doordash has INCREDIBLY high turnover and tons of workers quitting.
Doordash is one of the BIGGEST SUPPORTERS of Illegal Immigration.
Making laws like the Seattle Law national would GREATLY discourage illegal immigration.

[radrd]

Shocking. The same thing happened at most restaurants when Seattle required minimum cost of living pay for servers. Everyone who sat down to dine paid more or, in some cases, restaurants made gratuity an included charge to cover cost of living.

[stevebec]

Doordash takes like an 80% to 90% cut and drivers get a 10% to 20% cut. If this Seattle Law was a national law, then Doordash would be forced to lower its cut to 20% or go out of business. The fact that it's only Seattle has this law allows Doordash to artificially keep its cut at 80 to 90%.
Costco takes LESS than a 15% cut on everything and they have WAY more expenses than Doordash and are incredibly successful.
Costco has INCREDIBLY LOW turnover among employees while Doordash has INCREDIBLY high turnover and tons of workers quitting.
Doordash is one of the BIGGEST SUPPORTERS of Illegal Immigration.
Making laws like the Seattle Law national would GREATLY discourage illegal immigration.

Doordash lost $558M last year. I don't think they're in much of a position to lower their cut at all.

[guest89]

Anti-Captialists will deny this simple economic issue until they are blue in the face.

Business is forced to raise wages. Business passes on costs to customers. Can result in less customers due to people 'opting out' and/or the low paid workers that would normally be customers become priced out.


It happens literally everywhere with a super high minimum wage. The cost of goods & services also increase and in turn affects lower paid minimum workers even worse. It also happens in heavily unionized areas where unions demand a higher wage for their members. The more government regulations the higher the costs onto the customer.

[Sal29]

Doordash lost $558M last year. I don't think they're in much of a position to lower their cut at all.

The reason the lost $558m is because they have to constantly keep giving gigantic incentives costing hundreds of millions of dollars to lure new drivers when old drivers quit. Once DoorDash drivers have a major car repair, they realize that Doordash Pays WAY WAY below minimum wage after expenses and they quit.
If DoorDash actually paid above minimum wage after expenses then they'd repair their car and continue working for DoorDash.
This would lower turnover like craze and save DoorDash hundreds of millions and perhaps billions of dollars per year on incentives and training to lure new drivers.
Again, Costco has the lowest employee turnover in their industry and that's why they're so successful.

Costco is known for paying its employees well, which benefits both the employees and the company. Employees tend to be more satisfied and stay with the company longer (according to the article, there was only a 6% turnover rate among Costco employees as compared with 60% in the retail industry overall in 2021).

[Auburn RSX-S]

The kicker is that if this rule got rolled back, the higher fees would remain. Companies be greedy AF and they will throw anyone and everyone under the bus to avoid a hit on their bottom line.

Sauce: Have been under the bus