Carnegie Mellon University researchers released a study showing that Washington pay standards for gig workers led to an increase in ride prices, resulting in fewer rides and no net increase for driver pay, according to a Feb. 1 announcement.
The study analyzed the effects of minimum pay standards implemented in Seattle for gig delivery workers. Researchers found that while the base pay per task doubled due to the new standard, platforms responded by introducing regulatory fees and adjusting tipping mechanisms. The result was higher costs for consumers and reduced demand for rides, with no significant change in monthly earnings for drivers.
A study by Carnegie Mellon University analyzed 2,844,465 tasks completed by 5,930 workers from August 2023 to July 2024. Researchers An, Garin, and Kovak used a difference-in-differences approach, comparing workers in Seattle, where pay reforms were implemented, to those in other parts of Washington with low pre-reform exposure. The analysis included worker fixed effects and event month fixed effects, with clustered standard errors at the worker level. The minimum pay standard doubled the base pay per task in Seattle, while platforms introduced regulatory fees and adjusted tipping mechanisms according to the study.
The Washington Policy Institute reported that Seattle regulations have pushed Uber and Lyft fares up 50% to 60% compared with pre-pandemic rates. A ride from downtown Seattle to Sea-Tac Airport now costs $55 to $70, up from $35 to $40 previously. These higher fares result from mandated minimum pay for drivers and have reduced demand for rides, affecting local businesses that rely on gig platforms for transportation and delivery services according to the institute.
According to the Oregon Capital Chronicle, states including Washington, California, and Massachusetts have passed gig pay laws for rideshare drivers, setting varying minimum rates per mile and per minute. Nationally, these laws create a patchwork that affects millions of platform workers and can shift market dynamics. Data from multiple states show that these policies influence consumer access and service availability, with proposed legislation following similar patterns in earnings and ride volume according to the publication.
Carnegie Mellon University is a global research university founded in 1900 by Andrew Carnegie. The institution has over 16,582 students and 1,615 faculty members. It ranks 20th in national universities according to U.S. News and World Report for 2025. Researchers at the university conduct studies on labor markets, platform economies, and public policy impacts through programs focused on economics and applied analysis according to Carnegie Mellon University.
