Instacart and DoorDash are raising prices in Seattle following the city’s new minimum pay law.
Seattle in 2022 passed legislation that increased wages for drivers for the delivery apps. That law went into effect Saturday (Jan. 13), and is happening as the federal government is looking to raise wages for gig workers around the country.
According to a Seattle Times report, the new city law requires companies like DoorDash and Instacart to pay at least 44 cents per minute plus 74 cents per mile during orders (or $5 per order for orders that would otherwise pay less).
The city’s regular minimum wage of $19.97 per hour for employees at large companies hasn’t been directly applied to delivery-app drivers, whom companies have treated as independent contractors.
Steven Marchese, director of the Seattle Office of Labor Standards, told the newspaper the law was “an important step forward” in the city’s effort to create a gig economy that empowers workers, consumers and businesses.
However, both Instacart and DoorDash have criticized the law, and recently announced price increases and other changes.
Instacart said in a message to customers last week that they would “see new fees as a result of the significant increase in operating costs under this regulation,” with the company projecting that the wage hike amounts to drivers getting $26 per hour.
In addition, the new requirements mean Instacart will “only be able to facilitate orders from Seattle retail locations to customers who live within Seattle,” meaning “that customers outside of Seattle will not be able to order from stores within Seattle, and vice versa.”
DoorDash also says it’s introducing new fees and argues that the new law, “while well-intentioned,” will harm its drivers, customers and merchants.
“Merchants may experience significant declines in order volume as well as negative impacts to service,” the aggregator said in its announcement.
The new law is going into effect as the U.S. Department of Labor is preparing rule changes that could give gig workers more benefits and make it more difficult for companies to classify these employees as independent contractors.
While companies maintain the rules won’t have much effect on them, PYMNTS wrote last week that they could have a larger impact than anticipated.
“Structural changes may force a reckoning, where the platforms take on less supply, so to speak, as they contend with rising costs,” PYMNTS wrote.
“Consequently, they may hike prices: Uber said last fall that a proposed European gig worker law (which is still being hammered out) could trigger price increases of as much as 40%.”
The Seattle Seahawks lost a key member of the front office to the Minnesota Vikings, as the NFC North team named Nolan Teasley its new general manager. The hire could change the fortunes of both teams in the immediate future.
Teasley will be taking over a Vikings team that isn’t far away from contending. One of the key reasons the team fired former GM Kwesi Adofo-Mensah wasn’t that he couldn’t build a collection of talent, but that he didn’t seem to understand how to get the best possible answer at the most important position in sports: Quarterback.
Vikings fans watched as former QB1 in Minnesota, Sam Darnold, signed with the Seahawks last offseason, and then followed that by helping lead his team to a Super Bowl victory. That was Seattle’s second title. Minnesota has never won a Super Bowl.
Teasley, though, has the experience and, clearly, the ability to create an environment in which a team will thrive. He has been working with general manager John Schneider in Seattle since 2013, and has worked in scouting and been the director of pro personnel. He has most recently served as Schneider’s assistant GM.
Schneider could very well be inducted into the Pro Football Hall of Fame one day after leading the Seahawks to two Super Bowl wins. Still, with teams with two completely different rosters and coaching staffs (Schneider is the only GM to ever do that), Teasley would have learned at the knee of one of the best to ever perform general manager duties.
Nolan Teasley could also be entering a situation where his new team is already poised to make a deep run in the playoffs. Minnesota finished 9-8 last season despite the fact that its quarterback play was among the worst in the NFL. This offseason, the Vikings signed Kyler Murray.
Murray underwhelmed or was injured throughout his career with the Arizona Cardinals, as Seattle Seahawks fans know well due to their favorite team counting on two wins every season against the NFC West brethren, but under the wise direction of Vikings head coach Kevin O’Connell, Murray could be coaxed into playing a much better form of football.
As the Minnesota Vikings play in the NFC, and could potentially be a difficult obstacle for the Seahawks to repeat as Super Bowl champions, Teasley is already in a good spot. The issue for Seattle is that Teasley is smart enough to make moves to get Minnesota even better well into the future. A great rivalry between Seattle and the Vikings might be about to start.
Follow
How big an apartment can you rent in a city’s most walkable neighborhood without a car, for the same cost as a 1000 square-foot rental in its most typical suburb with a car? Ray Delahanty answers that for the 26 largest metro areas in the US. Seattle is at 6:23. (CityNerd)
Q&A about the tradeoffs of car-free living in Montreal. There are challenges “but they don’t exactly line up with what people think”. (Oh the Urbanity!)
This is an open thread.
SEATTLE – After waking up to a smattering of clouds this morning, skies gradually cleared through the afternoon as sunshine increased around Western Washington. Temperatures climbed into the low 60s for many communities, making for a pleasant and quiet start to the weekend.
What’s next:
Sunday will remain mild and dry with a little more warmth expected across the region. Winds will shift to a more northerly direction, helping temperatures inch upward compared to Saturday.
Sunny weather helps Seattle reach the low to mid 80s Tuesday during the warmest day of the week. (FOX 13 Seattle)
The warming trend will continue Monday as highs climb into the 70s under mostly sunny skies.
By Tuesday, a developing thermal trough along the Cascades will help usher in the warmest air of the week. Sunshine is expected throughout the day with temperatures soaring into the low to mid 80s for many communities.
Some of the traditionally warmer locations could climb even higher. The warmer, drier air will also raise fire danger across parts of the region.
This weather pattern helps Seattle experience sinking air, abundant sunshine, and significantly warmer temperatures. (FOX 13 Seattle)
If you’re planning to cool off at area lakes, rivers, creeks, or streams, remember that water temperatures remain dangerously cold despite the warmer air. Wearing a life vest is strongly encouraged.
Stay heat aware on Tuesday as Seattle weather warms quickly while rivers and lakes remain dangerously cold. (FOX 13 Seattle)
The heat will begin easing Wednesday as temperatures fall back into the low 70s. A cooler onshore flow pattern will continue Thursday and Friday, bringing highs back into the 60s. An isolated shower or two may develop Friday as a weak weather system approaches the Pacific Northwest.
Cooler weather returns to Seattle later in the week with highs back in the 60s and a slight shower chance Friday. (FOX 13 Seattle)
Take good care,
Meteorologist Abby Acone and the FOX 13 Weather Team
Former Renton, WA youth pastor arrested on suspicion of child molestation
Man accused of cutting tent, kidnapping two women camping near public trail
Millionaires tax will likely appear on November ballot
Tacoma, WA college student detained after mass shooting threats, shotgun seized
Where to watch FIFA World Cup matches in Seattle and Washington
DUI crash suspect in Kent, WA tells police he was ‘drinking Buzzballz’
To get the best local news, weather and sports in Seattle for free, sign up for the daily FOX Seattle Newsletter.
Download the free FOX LOCAL app for mobile in the Apple App Store or Google Play Store for live Seattle news, top stories, weather updates and more local and national news.
Tony Vitello just lost the only Giants allies he has left
Fatal crash on LBJ Freeway in Dallas leaves 1 dead, multiple people hospitalized, police say
Deputies searching for 2 men accused of shooting man during attempted robbery in SW Miami-Dade
Friend of Worcester woman killed in Virginia I-95 crash ‘cannot believe she is gone.’ – The Boston Globe
Denver hockey’s Johnny Hicks wins DU Pioneers’ Male Athlete of the Year
Vikings stealing Nolan Teasley from Seahawks might be even worse than it appears
Dining Out — series Part 1: A look at the evolution of La Jolla’s restaurant scene
Milwaukee Panthers Putting Together a Great Run in the NCAA Tournament – World Baseball Network
