DoorDash has announced another increase in service fees for Seattle customers, pointing to the city’s regulations for app-based workers as the driving factor. The company, which reported $3 billion in revenue during the first quarter of 2025, says it is operating at a loss in Seattle due to local labor laws, including a guaranteed minimum payment of $5.20 per offer for delivery drivers.
City rules also require a 14-day notice for driver deactivations and outline transparency requirements that are currently under investigation by the Seattle Office of Labor Standards. Officials say these protections have received positive feedback from gig workers, though DoorDash and others argue the regulations increase operational costs and reduce order volume.
Since the law took effect, DoorDash says average store revenue in Seattle dropped by 2%, while similar cities saw double-digit growth. The company claims delivery workers have seen their average hourly earnings decline by more than 20% since late 2023.
As the city and companies navigate compliance and cost concerns, businesses and workers alike are feeling the effects. DoorDash says it will continue adjusting its pricing to maintain service in what it now calls the most expensive market for delivery in the country.
