Seattle wage hike backfired on gig drivers

Seattle’s App‑Based Worker Minimum Payment Ordinance took effect January 13, 2024 and established citywide minimum‑payment rules for rideshare and delivery platform work. (seattle.gov) The city’s original formula required the greater of $0.44 per engaged minute plus $0.74 per engaged mile or $5 per task, and the ordinance’s rates were adjusted for 2026 to about $0.47 per minute, $0.80 per mile, or $5.34 per gig. (nber.org) A researchers’ analysis covering more than 2.8 million tasks completed by nearly 6,000 workers from August 2023 through July 2024 found that base pay per delivery roughly doubled while drivers’ total monthly earnings showed little or no increase. (nber.org) The study attributed the disparity to fewer available tasks in Seattle, large declines in tips after platforms added fees, and apps’ operational responses that reduced drivers’ engaged time per hour. (nber.org) The Drivers Union in Washington State says an oversupply of drivers is now depressing incomes and has publicly demanded Uber and Lyft pause new driver onboarding; dozens of drivers protested in downtown Seattle on February 25, 2026 to press that demand. (reason.com) Seattle City Council passage of multiple app‑based worker ordinances between 2022 and 2024, recorded under Council Bill CB 120775, created the legal framework that produced the payment formula now linked to the reported market distortions. (seattle.legistar.com)