On March 21, the Manhattan Institute published an analysis which found that Seattle’s minimum wage rules for rideshare and delivery drivers have increased fares, reduced demand, and shown no evidence of higher take-home pay for drivers.
The report examines how Seattle’s compensation rules for platforms such as Uber and Lyft have affected pricing, demand, and driver earnings in the city’s gig economy.
In a statement, the Manhattan Institute said its findings are based on platform data and economic outcomes following implementation of Seattle’s App-Based Worker Minimum Payment Ordinance. It also cites broader market effects, including changes in driver supply and platform adjustments in response to the policy.
Seattle now ranks as the most expensive city in the U.S. for Uber rides, with a 30-minute trip averaging about $60. By comparison, similar trips cost just over $33 in Washington, D.C., which does not have comparable minimum pay requirements for rideshare drivers.
The Washington Policy Center has reported that fares in Seattle have risen 50% to 60% compared with pre-pandemic levels, with higher prices contributing to lower trip volumes as consumers reduce usage. NetCredit has also identified Seattle as the most expensive major U.S. city for rideshare pricing.
Academic research has found mixed effects from the policy. A National Bureau of Economic Research working paper found that Seattle’s ordinance roughly doubled base pay per delivery task—from $5.37 to $12.52—but those gains were offset by lower tips and fewer completed tasks per month. The study found no clear increase in overall monthly earnings for highly active workers, with similar effects observed in rideshare services.
The Manhattan Institute is a public policy research organization focused on economic policy, regulation, and urban governance in U.S. cities.
