Analysis adds to debate over Seattle's delivery driver wage law

The question of how much Seattle should require app-based delivery companies to pay their drivers has lingered within city politics for years, particularly since 2024 when a minimum wage for drivers went into effect.

A new analysis from the city's office of labor standards argues the law has led to steady increases in pay for drivers since it went into effect and, on balance, represents a net positive when compared with the previous status quo.

That is a different conclusion than the one reached by the companies and at least one academic study, which argued the law's benefits were nullified by decreases in tips and reduced opportunities as Seattle has become the most expensive city in the country to order a delivery.

Regardless of its impact on real wages, whatever appetite there was in City Hall for changing the law has likely evaporated following a failed attempt by former council President Sara Nelson in 2024 and the election of a more left-wing slate of lawmakers, including Mayor Katie Wilson and several members of the Seattle City Council.

The nature of app-based gig work means setting a minimum wage is complicated. Unlike most work, drivers regularly cycle on and off the clock depending on if and when they receive an order.

The initial wage the city landed on was 44 cents per minute, plus 74 cents per mile during orders, or a minimum of $5 per order. That went up slightly in 2025.

Labor-backed advocates saw that calculation as appropriate to guarantee drivers at least the city's standard minimum wage, which is now just over $20 an hour. The companies who fiercely opposed the standard argued that it would lead to much higher pay than what is guaranteed for the rest of the city.

Almost immediately after the law took effect, companies imposed Seattle-specific fees. A newly elected City Council sought to rewrite it within months of taking office.

But the effort fell barely short and the standard has now been in place for nearly 2 ½ years. DoorDash and others have since raised prices further - blaming "extreme regulations." DoorDash now says Seattle is the most expensive city in the country for food deliveries.

Underlying the debate is the question of whether drivers are better off, the ultimate purpose behind the law.

The companies say no, arguing whatever boost in wages they've seen are offset by drops in orders and tips, leading to a net negative.

A study from Carnegie Mellon this year came to a more neutral conclusion: The law was a wash.

"Competition among drivers for delivery tasks intensified while customers made fewer orders and tipped less on each order in the aftermath," the authors of the study concluded. "Those effects combined washed out almost all of the intended gains."

With data from more than 92,000 drivers submitted by five companies, the city's office of labor standards came to a slightly more generous conclusion, though its analysis only compared the arc of driver earnings beginning in early 2024 through mid-2025 - not before the wage standard became law.

It found drivers were earning roughly $16 per hour they were logged onto the platform on average, though that varied widely by companies, with one paying closer to $12 and another closer to $25. Those earnings had climbed by about a dollar between 2024 and 2025.

The office's analysts concluded this was an improvement from 2023, though it relied on outside reports to make that determination.

"We are very confident that our data shows a significant increase in pay compared to those pre-ordinance reports," said Tina Marks, senior policy analyst for the office.

Additionally, after an initial decline in demand in early 2024, use of delivery apps crept up in 2025.

Tips did drop, as found elsewhere, but the office argued increases in base wages made up for the drop.

As for why the office had a different read than previous analyses, data consultant Nilesh Kavthekar said the companies can't see the whole picture.

"Seattle has the most comprehensive view of post-implementation trends in worker pay," he said.

Gig work companies broadly and Seattle government have had a strained relationship for years now. In addition to opposing the city's wage standards, the companies have also loudly opposed rules against deactivating drivers. DoorDash recently announced it was rolling out a new "task" service where workers do odd jobs for hire. The feature is available in most places, with several exceptions, including Seattle.

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