UNEXPECTEDLY: Seattle’s Sky-High Minimum Wage for Delivery Drivers Has Been a Disaster.
Gig workers make no more money, but prices went up.
Apps like DoorDash and Uber Eats added a $5 fee for consumers “to help cover the costs of these…regulations.”
Now Seattle residents complain about prices. “I ordered a $12 sandwich…$12 grew to $32!” complains one in my new video. “I just deleted the app.”
“[Work] has become slow because of the new law,” an app driver complains. DoorDash says it got 1.7 million fewer Seattle orders in 2024.
This is what happens when politicians dictate wages.
“Obviously, when you’re increasing cost to businesses, you’re going to increase costs to customers,” says economics professor Judge Glock. “These are unimaginably complicated markets where the company’s main job is interfacing between restaurants and delivery workers and customers. Then you have an economically illiterate city council or mayor who thinks, basically by looking at an industry through reading the news, they can appropriately regulate the exact wage.”
Former Seattle City Council President Sara Nelson admits that the politicians made a mistake: “We created a problem and it’s our responsibility to fix it.”
They repealed the harmful law?
No.
Government promises the solution that makes the problem worse that requires more government.