If you’re looking for yet another story showing how government interference makes everything worse, this is the article for you, dear reader.
In this episode, we have the city of Seattle, whose government magnanimously decided to pass legislation to force consumers to pay app delivery workers an extra $5 for each of their orders. The measure was ostensibly intended to supplement the income people earn from working with companies like Uber Eats and Doordash.
But surprisingly, the legislation is already backfiring because fewer people are using apps to order food and other products. Indeed, delivery drivers reported a significant decline in earnings because of the lack of work.
A new Seattle City ordinance designed to give food delivery app drivers a more livable wage is “backfiring,” according to several drivers.
You may have noticed that new $5 fee on Doordash and Uber Eats orders, but it is not just causing frustrated customers to delete their apps, as we reported. We are now learning the people the ordinance was designed to help are hurting.
What used to be considered “hotspots” for workers on those apps, feel a little colder since Jan. 13, according to several drivers we heard from. That includes Gary Lardizabal, a longtime, app-based, food delivery driver in Seattle.
“Sundays before the ordinance,” Lardizabal. “You know, we’d be thinking breakfast. Today, I didn’t even touch it. They’re not going to order. It is definitely backfiring.”
Since the ordinance went into effect last month, Mia Shagen said her delivery opportunities have been slashed.
“I’ve got nothin,” Shagen said. “I’m not gonna sit here for hours for one frickin’ order.”
Shagen also indicated that “tips are going down because they think we’re making all this money.” One driver indicated that he used to make about $931 per week. But after the law went into effect, he pulled in about $464.81.
And this, ladies and gentlemen, is what happens when government officials decide to continue meddling in the wild world of business. For some reason, these people took it upon themselves to determine that delivery drivers were not making enough money, so they passed legislation ensuring that they would make even less.
If these intrepid lawmakers were in touch with regular folks, they would have known that ordering from Doordash and Uber Eats is already quite expensive. With the delivery charges and increased pricing, you’re already going to spend a pretty penny to save that trip to Taco Bell. Adding on an extra $5 is essentially punishing these companies and the drivers who work with them just so members of the government can make it look like they are doing something productive.
Of course, a child probably could have seen this coming. If you impose more fees on a service, you are discouraging people from using it. Pulling this stunt while Americans are still dealing with rampant inflation just adds further insult to injury. It would be nice if Seattle’s residents could hold their officials accountable by voting them out, but given how little attention people pay to local politics, this is unlikely to happen.