DoorDash to add more fees to Seattle orders due to unchanged minimum wage law

(The Center Square) – With a proposed bill to adjust Seattle’s delivery driver minimum wage law stuck in the city council, DoorDash has announced more fees on certain deliveries in the Emerald City.

Starting on Thursday, an additional $1.99 fee on certain long distance orders through DoorDash will be implemented.

There will also be an additional $1.99 minimum service fee for orders from DashPass subscribers.

Seattle’s “PayUp” ordinance establishing a gross minimum wage for app-based delivery drives at $26.40 per hour without the inclusion of tips went into effect in January 2023.

Companies like DoorDash and Uber Eats responded by implementing a $4.99 fee that caused online orders to jump in price.

According to DoorDash, the latest increase in fees helps offset the costs of the more expensive deliveries under the minimum pay ordinance.

Seattle City Council President Sara Nelson’s proposed Council Bill 120775 has yet to be voted on since being passed out of committee on May 9. The bill would make minimum wage adjustments, reduce the per-mile rate, and remove the mileage factor from the current minimum wage law, resulting in a minimum payment standard of $19.97 per hour, along with 35 cents per mile for engaged time while driving.

Tips would not be included in the minimum payment.

“It was our sincere hope that these additional fees could be avoided, but the city council's inability to reach a compromise that would reduce costs, even marginally, has left us with few options,” the company said in a press release .

DoorDash released data last month that revealed merchants in Seattle earned $14 million less than they otherwise would have on the DoorDash Marketplace between February and May, and there were 590,000 fewer orders for drivers to deliver in the same time frame.

Uber Eats also reported a significant drop in orders after the ordinance was enacted.

DoorDash signaled an end to its $5 fee if Nelson’s bill is approved.

“As always, we will evaluate the effects of these fees and react or make any future changes as needed to continue operating a sustainable and growing business in Seattle,” the company wrote.

Not final vote date for Council Bill 120775 has been set.