Doordash Says THE Most Expensive City to Operate In Is….?

The laws were passed in 2023, but went into effect this year, and the company is not happy about it at all.

 Doordash slams Seattle policies concerning drivers

There will be increased fees for Doordash users now in Seattle, in response to new regulations the company says are jacking up their costs.

In 2023, the Seattle City Council, in response to a group of 'activist' delivery drivers, passed new laws concerning what's called "driver deactivation" a fancy term for being let go or fired.  A deactivated driver is removed from Doordash's list of eligible drivers.

The drivers demanded more rights and transparency and more say in whether they are utilized or let go.

The new rules require a 14-day notification notice for drivers who are being parked, and access to records or data leading to the decision. According to Geekwire, this law is the first of its kind and covers drivers who deliver food, groceries, and other products.

The law also says beginning in 2027, Doordash and related companies must offer just-cause for why a driver was let go, and the dismissal can be investigated.

It does NOT apply to Uber or Lyft people-transport drivers, they're already covered under a new WA state law.  Geekwire says it's part of a growing effort by Seattle leaders to regulate and control the gig economy.

However, Doordash says the regulations cost more money to implement, and said they are operating in the red in Seattle, but did not say how much. Corporate-wide, Doordash reported earnings of $3 billion in the 1st quarter of 2025.

According to a Doordash blog post: (referring to Seattle)

“To be clear, we are increasing some fees in an effort to continue delivering in the city — a market in which DoorDash operated at a loss in 2024."

The company went on to say, according to Geekwire::

(Seattle is) “the most expensive market to facilitate delivery” in the US by a wide margin.

No word has been given if these regulations and other governmental actions would cause Doordash to consider removing service from Seattle. Doordash, Instacart, and Uber had fights with Seattle officials last year over the city's new minimum wage law, and raised fees because of those costs.