RE: LeoThread 2026-02-16 08-00

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Seattle's $26.40 minimum wage for app-based delivery workers produced no net increase in worker pay while hours worked fell by about 30%

leofinance
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A look at how Seattle's DoorDash law actually played out
In 2024 Seattle enacted "PayUp" — a $26.40/hour minimum for food delivery drivers intended to protect workers

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DoorDash added a $5 fee per order, customers cut back. Within two weeks there were 30,000 fewer orders and Uber Eats volume dropped 30%
Drivers saw available deliveries shrink by half and hourly earnings fall roughly 25%

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A National Bureau of Economic Research study found higher per-delivery pay was fully offset by fewer deliveries and lower tips, leaving active drivers with zero net monthly earnings gain

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Local reporting two years later shows Seattle is now the most expensive delivery market; Denver, Portland, and San Francisco — without such laws — saw delivery revenue grow 20–40% while Seattle stagnated

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The situation parallels proposed Washington tax changes: a 9.9% income tax on high earners and QSBS add-back bills that remove federal exclusions for founders. Small taxes are often framed as minimal, but capital and founders can relocate

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The DoorDash case is a controlled comparison — same company and product, different policy environments. The city with the heaviest regulation experienced the worst outcomes, including for the workers the policy aimed to help

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