[US] No delivery fees for Amazon Flex in Seattle despite peer rises

In the US, Amazon has stated that it does not expect Seattle customers receiving deliveries from Amazon Flex drivers working as independent contractors in their own vehicles to be impacted by additional fees, GeekWire reports.

Earlier this month Amazon's delivery platform peers, Uber, Instacart and DoorDash announced that they were adding new delivery fees for Seattle customers following recently implemented gig worker minimum wage laws. But the online retail giant comments to GeekWire suggest that it does not intend to follow suit.

The new law was originally passed in May 2022. It establishes a minimum wage and other benefits for gig workers who deliver meals, groceries and packages. It was the first of several unique “PayUp” gig worker protection laws approved recently in Seattle.

Uber implemented a new $5 fee for Uber Eats orders in Seattle after the law went into effect. It reportedly described the charge as a “Local Operating Fee” that “helps offset the increased cost of regulations imposed on third-party delivery apps.”

Instacart and DoorDash added new fees for orders in Seattle too and boosted some offers for delivery workers.

A blog post from DoorDash said, “Dashers who deliver in Seattle will now earn at least $26.40 per hour, before tips, plus mileage for time on delivery - far exceeding Seattle minimum wage.”

Amazon said, in a FAQ for its Flex drivers, that it will calculate pre-tip earnings after each delivery block is completed. “If your pre-tip earnings are less than the guaranteed minimum payment, we will pay you the difference automatically,” the response said.

Amazon Flex drivers deliver Amazon.com and Prime Now orders, in addition to grocery orders which allow for tipping.

GeekWire says it may - theoretically and technically - be more difficult for a company like Amazon to pass new fees along to customers as a result of the minimum wage law. Some orders are fulfilled by Amazon Flex drivers, others are delivered by Amazon’s Delivery Service Partners. Amazon also continues to use UPS and USPS for some deliveries.

In December 2023, Target-owned delivery service Shipt reportedly announced it was pausing operations in Seattle as a result of the recently passed labour laws.

In a January 12 post to customers, Uber said, “The City of Seattle did not pursue balanced legislation and we disagree with their approach.

“These rules will instead lead to higher prices for consumers, fewer orders to restaurants and fewer work opportunities for delivery drivers.”

In a statement to GeekWire last week, Steven Marchese, director of Seattle’s Office of Labor Standards, said that the PayUp laws “do not mandate any increase to customers’ prices.”

“Companies are free to decide if and how to address any increased labour costs, for example by adjusting the commission percentage they take on each order or raising prices for consumers,” Mr Marchese said. “These laws go beyond app-based/gig workers, establishing a ripple effect to improve conditions for all, demonstrating Seattle’s commitment to a just and equitable economy and strengthening Seattle’s position as a national leader in worker protections.”

Source: GeekWire

(Links and quotes via original reporting)

In the US, Amazon has stated that it does not expect Seattle customers receiving deliveries from Amazon Flex drivers working as independent contractors in their own vehicles to be impacted by additional fees, GeekWire reports.

Earlier this month Amazon's delivery platform peers, Uber, Instacart and DoorDash announced that they were adding new delivery fees for Seattle customers following recently implemented gig worker minimum wage laws. But the online retail giant comments to GeekWire suggest that it does not intend to follow suit.

The new law was originally passed in May 2022. It establishes a minimum wage and other benefits for gig workers who deliver meals, groceries and packages. It was the first of several unique “PayUp” gig worker protection laws approved recently in Seattle.

Uber implemented a new $5 fee for Uber Eats orders in Seattle after the law went into effect. It reportedly described the charge as a “Local Operating Fee” that “helps offset the increased cost of regulations imposed on third-party delivery apps.”

Instacart and DoorDash added new fees for orders in Seattle too and boosted some offers for delivery workers.

A blog post from DoorDash said, “Dashers who deliver in Seattle will now earn at least $26.40 per hour, before tips, plus mileage for time on delivery - far exceeding Seattle minimum wage.”

Amazon said, in a FAQ for its Flex drivers, that it will calculate pre-tip earnings after each delivery block is completed. “If your pre-tip earnings are less than the guaranteed minimum payment, we will pay you the difference automatically,” the response said.

Amazon Flex drivers deliver Amazon.com and Prime Now orders, in addition to grocery orders which allow for tipping.

GeekWire says it may - theoretically and technically - be more difficult for a company like Amazon to pass new fees along to customers as a result of the minimum wage law. Some orders are fulfilled by Amazon Flex drivers, others are delivered by Amazon’s Delivery Service Partners. Amazon also continues to use UPS and USPS for some deliveries.

In December 2023, Target-owned delivery service Shipt reportedly announced it was pausing operations in Seattle as a result of the recently passed labour laws.

In a January 12 post to customers, Uber said, “The City of Seattle did not pursue balanced legislation and we disagree with their approach.

“These rules will instead lead to higher prices for consumers, fewer orders to restaurants and fewer work opportunities for delivery drivers.”

In a statement to GeekWire last week, Steven Marchese, director of Seattle’s Office of Labor Standards, said that the PayUp laws “do not mandate any increase to customers’ prices.”

“Companies are free to decide if and how to address any increased labour costs, for example by adjusting the commission percentage they take on each order or raising prices for consumers,” Mr Marchese said. “These laws go beyond app-based/gig workers, establishing a ripple effect to improve conditions for all, demonstrating Seattle’s commitment to a just and equitable economy and strengthening Seattle’s position as a national leader in worker protections.”

Source: GeekWire

(Links and quotes via original reporting)