#2,157 - Seattle hourly wage increase causes huge drop' in Door Dash business

Seattle's recent minimum wage law for app-based workers, requiring an additional fee on every delivery, is causing a significant impact on local businesses and consumer behavior. Co spice Walla, a popular Indian cuisine restaurant, reports a 30% drop in delivery orders, attributing it to customers' reluctance to pay the extra $5 charge. This decline in demand is also affecting third-party delivery drivers, who are not seeing any increase in their income despite the new legislation. The law aims to ensure fair compensation for gig workers, but its unintended consequences are evident. Seattle's Door Dash has observed 30,000 fewer orders, signaling a stark decline in delivery services. This shift is compelling consumers to reconsider their ordering habits, opting to either pick up their food or cook at home, given the inflated costs of delivery. The situation reflects the broader challenge of balancing worker rights with business viability and consumer affordability in a high-cost living city like Seattle.