Higher Wages for Delivery Drivers Lead to Fewer Orders

Reported 11 months ago

As cities like New York and Seattle increased wages for app-based delivery drivers, food-delivery apps responded by raising fees, resulting in frustrated consumers, reduced restaurant orders, and a decline in delivery drivers. While New York authorities view the wage increases as successful in raising delivery workers' pay, Seattle plans to roll back its rules due to negative impact. The apps are concerned that similar legislation in more cities could further affect their businesses, with potential cost increases for consumers and struggles with inconsistent profits.

Source: YAHOO

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