Seattle becomes first US city to set minimum wage for app-based delivery drivers

• The "Pay Up" bill will set the minimum wage for delivery drivers at $17.27 an hour.
• Food delivery drivers for the likes of UberEats and Grubhub are paid per ride, plus tips.

Seattle has become the first US city to set a minimum wage for app-based delivery drivers after new rules were passed on Tuesday.

The "Pay Up" bill will set the minimum wage for these workers in accordance with the city's rate of $17.27 per hour and come into force in 2023, The Seattle Times reported.

"We live in an expensive city; many delivery workers earn below the minimum wage after expenses and tips are accounted for," said Lisa Herbold, one of the council members behind the bill, in a statement.

"The passage of this legislation will help tens of thousands of delivery workers make ends meet while maintaining their flexibility."

Delivery drivers face challenging situations including demanding workloads, long hours, safety concerns, confrontational customers, and a lack of access to toilets.

Food delivery drivers working for companies such as UberEats, Grubhub and DoorDash are paid per ride, in addition to tips. Some of these companies having resisted setting minimum wages for workers in the US in particular.

The bill, which has taken more than a year to pass, also aims to create more transparency about payments and protect the flexibility of app-based workers.

"Large segments of our economy are becoming more and more automated with lower pay and scant benefits," said Andrew Lewis, the other council member behind the bill. "As the economy evolves, so too must the approach of local government. This bill is the first step to protect and expand the rights of workers who use these apps."

Gig companies, however, are concerned that increased costs of delivery will drive down orders, Fox 29 reported.