The Flex Association announced on its website that its report indicates Seattle’s 2024 delivery pay ordinance has led to unintended negative economic consequences for app-based workers, local businesses, and consumers.
According to the Flex Association’s published report, app-based delivery and rideshare platforms have become integral to how consumers obtain goods and services, how workers earn on flexible terms, and how local businesses expand their reach. The report argues that these platforms support all sides of the marketplace by enhancing access, income options, and commercial opportunities. However, it warns that rigid regulatory mandates—such as Seattle’s 2024 delivery pay ordinance—can disrupt this balance, resulting in harm rather than benefits.
In the first 13 weeks following Seattle’s ordinance, the report shows that local business sales dropped by $17.6 million, a significant revenue loss attributed to lower order volume and higher delivery costs. The Flex Association explains that mandates on per-mile, per-minute, and per-offer pay—totaling $26.40—raised prices paid by consumers, reducing demand for deliveries. Consequently, many restaurants and retailers reliant on app-based orders experienced reduced patronage and compressed margins.
Also according to the report, total app-based delivery orders in Seattle declined by 25%, and driver earnings per hour (while logged into the app) fell by 28% on average. The analysis attributes this to the fact that the higher mandated floor distorted matching of supply and demand—fewer orders meant fewer earning opportunities despite higher per-task rates. This demonstrates how a policy intended to boost wages can paradoxically reduce total earnings and participation among gig workers.
According to its “About” section, the Flex Association is a coalition of app-based rideshare and delivery platforms advocating for balanced, data-driven regulation that preserves worker flexibility, consumer choice, and innovation. The organization engages in research, policymaker outreach, and public education to influence laws affecting platform work. It positions itself as a central voice in debates over how to regulate gig economy business models fairly.
