Andrew Garin, associate professor of economics at Carnegie Mellon University, said on March 19 that Seattle’s rule for app-based delivery drivers has relevance for proposed legislation in Colorado.
The topic is significant as lawmakers and advocates in Colorado consider new regulations to address low pay among gig workers. According to a report from Colorado Jobs with Justice, in partnership with Colorado Independent Drivers United, hundreds of gig workers in the Denver area reported earning an average net hourly wage of $5.49 after expenses, or about 35% of Denver’s minimum wage at the time. Respondents worked a median of 38 hours per week, with most relying on gig work as their primary source of income and 61% using it to pay bills.
Garin examined Seattle’s App-Based Worker Minimum Payment Ordinance and its effects after implementation in January 2024. “When we studied what happened to delivery drivers’ earnings after Seattle’s payment rule took effect we found that despite base pay per delivery roughly doubling their total monthly earnings barely changed. That’s because competition among drivers for delivery tasks intensified while customers made fewer orders and tipped less on each order in the aftermath. Those effects combined washed out almost all of the intended gains,” according to Garin in an article published by The Conversation, which examined outcomes using gig worker data tracking changes after the policy took effect. The analysis compared drivers with varying levels of exposure to the Seattle market and looked at base pay, tips, order volume, and overall compensation trends.
Nationally, Gridwise data covering roughly one billion tasks across ride-hailing and delivery platforms showed wide variation in average hourly pay in 2025. DoorDash drivers earned about $11 per hour, while Uber drivers earned around $22 per hour during active work. Walmart Spark ranked second overall at $23 per hour. These figures reflect earnings while drivers are actively engaged in tasks across major gig platforms nationwide.
Garin is an associate professor at Carnegie Mellon University’s Heinz College whose research focuses on labor economics and the gig economy using administrative data and quasi-experimental methods. He previously served as an assistant professor at the University of Illinois at Urbana-Champaign and as a postdoctoral fellow at the National Bureau of Economic Research.
