Companies such as DoorDash and Grubhub will be required to pay a 10-cent per-order fee for online deliveries in Seattle starting in 2025, following the passage of a new law by the Seattle City Council on Tuesday.
- The bill, CB 120706, will use revenue generated by the fee to help pay for the implementation and enforcement of recently passed “PayUp” gig worker protection laws in Seattle: one that sets minimum wage policies, and another related to regulations for the worker deactivation process.
- The law, which also requires companies to obtain a “network company license,” exempts grocery-only delivery orders. It is projected to generate at least $2.1 million per year.
- The council voted 7-2 to pass the law. Councilmember Lisa Herbold, who sponsored the bill, said the bill will help “vulnerable workers.” The average customer will pay an additional $5.20 per year if companies pass the fee to customers — “which they don’t have to do,” she said during Tuesday’s meeting.
- Companies including DoorDash and Instacart opposed the bill. Read our previous coverage here, and read the full bill below.
