DoorDash says data shows Seattle pay rules have caused 'unprecedented drop' in business

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New data from DoorDash shows a stark decline in delivery orders placed in Seattle after the city council's minimum payment law for app-based workers took effect last month.

The Seattle City Council's ordinance requires that app companies that employ «gig workers» as independent contractors must pay the greater of a minimum per-minute amount of $0.44 and a minimum per-mile amount of $0.74, or a minimum per-offer amount of $5. 

In response to the law, DoorDash attached a flat service fee of $5 per order to bring the hourly compensation for workers making deliveries to $26.40 before tips plus mileage – well above Seattle's minimum wage of $19.97 an hour. While the company's «Dashers» make more while making deliveries, that's come at the cost of order volume according to DoorDash.

DoorDash said that its data shows an «unprecedented drop in order volume» since the Seattle ordinance took effect last month. It said that in the two weeks after the changes launched, consumers placed 30,000 fewer orders on the DoorDash marketplace and added that «we expect this volume loss to compound even more over time.»

SEATTLE'S MINIMUM PAY ORDINANCE HURTING DELIVERY DRIVERS IT MEANT TO HELP

DoorDash said its platform has seen a notable drop-off in deliveries in Seattle over the course of the last month. (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)

Within that two-week sample following the ordinance's implementation, DoorDash said Seattle businesses missed out on over $1 million in revenue from the DoorDash marketplace. The company said, «At a time when