Mark Mahaney, senior managing director at Evercore ISI, revealed the top tech stocks ahead of the market open, arguing that Meta and DoorDash stocks are good investments.
New data from DoorDash shows a significant drop in delivery orders in Seattle after the City Council action. minimum payment law The app-based scheme for workers came into force last month.
of Seattle City Council Ordinance App companies that hire “gig workers” as independent contractors must pay them a minimum of $0.44 per minute and $0.74 per mile, or a minimum of $5 per offer, whichever is greater. It stipulates that.
In response to the law, DoorDash imposed a flat $5 service fee on every order, making delivery workers’ hourly wages $26.40 before tips and mileage. This is significantly higher than Seattle’s minimum wage of $19.97 an hour. DoorDash says its Dashers make more money while delivering, but at the expense of order volume.
DoorDash said its data shows an “unprecedented decline in order volume” since Seattle’s ordinance went into effect last month. The report said consumers placed 30,000 fewer orders on the DoorDash Marketplace in the two weeks after the changes began, adding, “We expect this volume decline to worsen over time. There is,” he added.
Seattle’s minimum wage ordinance hurts delivery drivers it was supposed to help
DoorDash said its platform saw a significant drop in deliveries in Seattle last month. (Tiffany Hagler-Geard/Bloomberg via Getty Images/Getty Images)
Within a two-week sample after the ordinance went into effect, Seattle businesses lost more than $1 million in revenue from the DoorDash market, DoorDash said. The company said, “In times like these, local companies This is a huge blow to Seattle’s local commerce as we have to work harder than ever to keep our doors open. ”
DoorDash added that its Dashers wait on average three times longer to receive offers to fulfill consumer orders. This means that the consumer has less opportunity to show up to work on time during deliveries and earn at least $26.40 per hour.
“Seattle retailers are currently suffering from significant revenue declines and loss of new customer contact,” DoorDash said. “We are committed to working with legislators to find practical solutions that will strengthen local commerce, restore access to critical delivery services, and help dashers continue to earn an income on their own schedules,” the company said in a statement. I will do my best,” he added.
Drivers and couriers from DoorDash’s “Dashers” and other apps like Uber Eats and Instacart have noticed a drop in delivery orders after Seattle’s minimum wage ordinance went into effect. (Andrew Haller/Bloomberg via Getty Images/Getty Images)
DoorDash, Uber Eats and delivery apps raise prices in Blue State city over minimum wage law
Gig workers on platforms like DoorDash, Uber Eats, and Instacart are similarly reporting fewer delivery opportunities.
Gary Lardibazzar, a delivery worker who worked for one of these platforms in Seattle, told FOX Business last week that even when Amazon and other tech company employees were in the office, “wait times were half a day” in downtown Seattle. Told.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| dash | Door Dash Co., Ltd. | 114.71 | -1.30 | -1.12% |
| Uber | Uber Technologies Co., Ltd. | 76.28 | -2.13 | -2.72% |
| cart | Maple Bear Co., Ltd. | 27.84 | +1.07 | +4.02% |
“Orders for drivers and couriers are down, and business for restaurants is definitely down,” he said. Considering Seattle’s high cost of living, high gas pricesHe said the number of deliveries available has fallen sharply since the law came into force, making it difficult for couriers and drivers to make a living in their roles.
“This is not a living wage,” Lardibazar said, adding that the Seattle City Council should repeal the rule to help delivery workers, consumers and businesses. “It hurts us, it hurts consumers, and it will continue to hurt us. close the restaurant. Please abolish it. ”
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The Seattle City Council’s minimum wage ordinance for app-based workers went into effect in January. (Photo by George Rose/Getty Images/Getty Images)
The Seattle City Council did not respond to requests for comment.
A Seattle Department of Labor Standards spokesperson told KIRO 7 in a report last week that it was “too early to assess” the ordinance’s impact.
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They added that, at the time of the report, it had been in effect for less than a month, and that “the city will continue to monitor these and other metrics. The law does not require businesses to raise prices for customers. No,” he added.
