Food-delivery giant DoorDash (Nasdaq:DASH) is immediately imposing new fees on orders in B.C. to compensate for the B.C. government in June imposing a new higher minimum-wage structure for gig workers.
As of Sept. 3, gig-workers in B.C. have been earning a $20.88-per-hour minimum wage while making deliveries. They are not paid when they are between deliveries.
"These new regulations are significantly increasing our operating costs," DoorDash said today in a news release. "All delivery orders placed through DoorDash in B.C. will include a new regulatory response fee ranging from $0.99 for restaurant delivery orders and up to $2.99 for all other delivery orders."
The $20.88-per-hour wage is 20-per-cent higher than the $17.40 minimum wage that other workers in the province get, and it is because much of the gig-workers' shift is unpaid because the worker is waiting around for the next delivery or ride to provide.
The higher wage does not include tips, so delivery workers and drivers tend to make more than just that minimum wage.
"This regulatory-response fee will be clearly communicated to consumers the first time they open DoorDash after the fee is implemented, and it will be displayed at check-out," DoorDash said. "This fee will apply in addition to any applicable delivery, service, and expanded range fees. Customers may also see increased service fees for delivery orders."
DoorDash explained that the new fees as "necessary to cover the higher costs caused by the province’s new regulations and to continue providing a high-quality experience."
Time will tell whether the higher fees discourage consumers from using the DoorDash app.
The B.C. government last year announced its intention to impose the new tier of minimum wage for gig workers. The government then passed Bill 48 to codify the change. It also changed the Workers Compensation Act and the Employment Standards Act to prohibit companies such as DoorDash and Uber Eats from withholding tips and to require that the drivers be covered by workers' compensation.
This prompted DoorDash in January to fund a survey, which found sizable opposition to the B.C. government's actions.
