Since Seattle implemented its extreme delivery pay law in early 2024, small businesses throughout the city have struggled to stay afloat as many consumers are unable to afford delivery due to this harmful policy. Adding a statewide tax on virtually all delivered goods would be another blow to Seattle residents and Washingtonians already facing a cost of living crisis.
DoorDash has joined hundreds of local businesses and Dashers in Seattle to advocate for common sense changes that would help eliminate high costs in the city. Despite the clear evidence that this policy has backfired, the City Council has refused to take action.
The numbers:
Seattle mandates that delivery workers are paid nearly $30 an hour before tips–more than some first responders in the city.
This policy drove up the cost of facilitating delivery in Seattle, and led to Seattle consumers placing 1.7 million fewer orders on the DoorDash marketplace in 2024.
Our estimates show Seattle businesses have earned roughly $40 million less on DoorDash than they otherwise would have in 2024.
Some of Seattle’s most popular local restaurant orders on DoorDash would cost roughly 40% more after accounting for a statewide delivery tax on top of Seattle’s costly policies.
As we’ve previously reported, Dashers are waiting on average three times longer in between orders under this new law.
These numbers closely reflect the projections we shared with Seattle leaders early in 2024, and show the devastation this costly policy has had on local businesses. The policy has not only driven up costs but has also incentivized fraud: some bad actors are attempting to game the system by intentionally taking longer to complete orders or trying to get paid without doing any work. While this type of fraud is rare and can result in deactivation, conditions in the city’s laws–including some that make it easier for fraudsters to abuse Seattle's rules to avoid deactivation–make Seattle a target for this kind of behavior.
What’s next: The State of Washington is now considering an additional tax on virtually all deliveries, with no exception for essentials like meals, toothpaste, and even diapers. This policy would only add to the skyrocketing cost of delivery in Seattle and around the state and add to the ongoing cost of living crisis. It is no surprise this proposal is deeply unpopular with Washingtonians, with nearly 72% opposing the creation of a statewide delivery fee.
Why it matters: The State has not yet passed this proposed tax, and we’re doing all we can to urge lawmakers not to raise costs on Washington families. DoorDash’s mission is to empower local economies, and we’re standing up for the thousands of local businesses and Washingtonians who would be hurt by yet another cost increase.
