Thinking about the Seattle PayUp legislation, app firms have learned how to offload costs onto employees. But it puts more burden on them.
Proposed changes to the “PayUp” ordinance in Seattle, intended to improve compensation and terms for so called “gig workers” highlights something I find interesting — and I think some people miss.
These app companies have figured out how to offload the costs of maintenance, insurance, and that ever-variable in rising cost of gas onto the employee, which is smart business. But it also puts more burden on the workers to maintain the equipment needed to do their jobs. Big tech develops and maintains the app and provides customer service.
Critics focus on what seems like a “higher than minimum wage” for drivers. But when you factor in their actual costs, especially with the fuel prices we pay in Washington, food delivery is not making drivers wealthy. And I’d argue they’re not getting more than they deserve. No one is getting rich here …
… Except for UberEats and DoorDash. They’ve got the cash to throw at lobbyists. Revenues for the online food ordering sector reached $294 billion in 2021. And no one’s saying these companies can’t continue to profit. But they don’t get to offload the bulk of their costs, create a product that pressures independent restaurants to buy in to remain competitive, profit massively, and expect to basically write the laws in their favor.I think these companies are missing an opportunity.
Ultimately, these apps are a luxury. They’re not an entitlement, and most people don’t really need them to live. They’re convenient — and convenience has a price. But they’re not a convenience for the workers — and those whose labor and time has netted billions in revenue for Silicon Valley, shouldn’t be shafted in the process of any adjustments.Someone who will not reveal themselves anonymously stuck a piece of chewed up gum onto the very nice table in the video studio at KIRO Newsradio.
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