An app-based delivery worker waits outside of a restaurant in New York City.
Seattle takeout orders have reached a breaking point. Amid horror stories of $122 Thai delivery and $26 to-go coffees, the Emerald City is now considering rolling back a brand new wage law that’s causing food takeout prices to skyrocket and delivery orders to tank. It’s just the latest in a series of wage laws that are backfiring this year, causing chaos for customers, restaurants, and the gig workers they were meant to help.
In an inflation-riddled economy, many families are struggling with rising prices. But instead of fighting inflation head-on, recent laws passed in Seattle and New York have created new rules around how online delivery platforms, like DoorDash and Grubhub, are required to pay their workers. At the same time, cities like Minneapolis have passed new laws restructuring how rideshare apps like Uber and Lyft are required to pay gig drivers.
These new laws are intended to provide app-based delivery and rideshare drivers with livable earnings by creating a price floor for gig worker wages. But their heavy-handed restructurings of the labor market have unintentionally passed eye-opening costs onto consumers. The end result is fewer orders, fewer work opportunities, and less local business.