Seattle’s PayUp Ordinance Cost Local Businesses Over $17 Million Over Three-Month Period, According to New Flex Study

Independent study finds that Seattle’s delivery pay ordinance costs workers, consumers, and local businesses.

WASHINGTON – Total delivery orders fell a full 25 percent over a 13-week period following the implementation of the City of Seattle’s App-Based Worker Minimum Payment Ordinance, costing local businesses $17.6 million, according to a new study from Flex, the trade association representing the leading app-based platforms. The study was authored by leading consultancy Public First.

The Minimum Payment Ordinance – also called “PayUp” – levied a minimum per-mile, per-minute, and per-offer pay requirement well above local minimum wage. Implemented in January 2024, this led to a host of unintended consequences that have harmed workers, businesses, and consumers alike. The study found that in the 13 weeks following the ordinance:

• Driver earnings dropped 28% per hour logged into the apps compared to the same period the year before.
• Sales for Seattle’s local businesses dropped $17.6 million compared to the same period the year before.
• Total delivery orders fell 25% compared to the same period the year before.

“The app-based industry drives growth for local businesses and workers, while providing essentials to consumers,” said Flex CEO Kristin Sharp. “When lawmakers regulate this industry without fully understanding it, they often end up hurting the people they want to help. We hope that this study serves as a cautionary tale for other cities and states considering similar legislation. Flex looks forward to collaborating – at the local, state and federal levels - to develop solutions that support economic growth rather than undermining it.”

Read the full report here.

CONTACT:       

media@flexassociation.org

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About Flex: Flex is the voice of the app-based economy, representing America's app-based platforms and the people who count on them. Our members help customers access crucial goods and services safely and efficiently, offer flexible earning opportunities to workers and support economic growth in communities across the country.