Since January, countless Dashers, small businesses and consumers have demanded changes to Seattle’s misguided app-based minimum pay ordinance, the law that led to a drastic reduction in orders from Seattle merchants and therefore Dasher earnings. Despite these good-faith efforts, and months of public outcry, we have been met by inaction and a City Council that has decided not to do anything to restore affordable delivery in the City.
As we’ve explained to the City Council, even after adding a $4.99 regulatory response fee, DoorDash continues to lose money in the market due to the minimum pay ordinance. To help promote affordability and minimize the impact on local businesses, we have held off on further increasing fees for the last six months while the Council debated a compromise bill to reduce costs of facilitating delivery. With a few members of the Council deciding they will not allow a compromise to move forward, we will have to make changes to remain operationally sustainable in Seattle.
Beginning on August 1, we will start implementing an additional $1.99 fee on certain long distance orders. This increase reflects that such orders require more effort to complete. This fee also will help to offset the costs of some of the most expensive deliveries under the minimum pay ordinance. In addition, we are implementing a $1.99 minimum service fee for orders from DashPass subscribers.
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. 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.
