This is what you get when the government tries to help you out.
Delivery drivers for UberEats, DoorDash, and other delivery services in Seattle saw nearly half of their business disappear compared to the same time last year after the city did them a favor and required a $4.99 delivery fee on all orders.
New York City and Seattle implemented similar plans, requiring a delivery fee that went straight to the drivers so that food delivery contractors could earn close to the mandated minimum wage in those cities.
What they somehow didn't see, is that paying 5 bucks more PER TRANSACTION actually killed ALL of their business.
We reported on this trend back in February, but the Wall Street Journal confirmed it again with an analysis from Q1 of 2024:
Uber Eats' UBER orders in Seattle fell 45% last quarter from the same period a year earlier after the company imposed a $4.99 fee on each order to cover the city's new pay requirements. Demand also cooled in New York City, Uber and DoorDash DASH.
Consumers already pay the apps a service fee and delivery fee, in addition to tipping workers. For some, the latest app fees were the last straw.
Yeah, no kidding.
Seattle-based researcher Ro Singh was hooked on ordering in several times a week until the city adopted its pay measure in January. App prices 'became absolutely nuts,' he said, after adding varying delivery fees in addition to tipping. He started picking up the food himself.
'It's like double the price to order a $20 burrito now' compared with the pickup price, he said. 'This is insane.'
Everything our woke governments touch turns to crap.
In New York, the same predictable results are happening after the city jumped the minimum wage for delivery drivers to $19.56 per hour (up from an average of $5.39 per hour).
Uber Chief Executive Dara Khosrowshahi said the company has had to cut 25% of the delivery drivers who previously worked for the app in New York City. 'So far, regulation has definitely hurt the people that it's supposed to protect,' Khosrowshahi said last month on a call with analysts.
Good job, commies! You saved people's wallets by putting 1-in-4 drivers out of work!
Shuai Zhang, the owner of Poprice, an Asian street-food restaurant in New York City, says his delivery sales are a third of what they were before the changes. Drivers who once picked up from his restaurant are now asking him for jobs. He hired two of them.
What a chaotic mess.
More from Mishtalk:
Perfect Trifecta of Who Is Unhappy
Drivers because they are making less money
Restaurants because they are losing business
Customers because of slower deliveries, cold food, and higher prices
The city loses too. Seattle collects a sales tax of 3.85 percent.
I'm sorry, how could they not see this coming?
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