Lynn Reed, representing Drive Forward Seattle, told the Colorado House Committee on Business Affairs and Labor on March 11 that her firsthand experience with Seattle’s mandated pay standards highlights the potential risks of HB 1273, cautioning it could increase costs for riders and reduce earning opportunities for rideshare drivers in Colorado. She delivered her testimony during a hearing on the bill, which would limit transportation network companies to retaining no more than 20% of fares, and drew on her experience working under Seattle’s Pay Up ordinance, according to the committee summary.
The debate over HB 1273 is significant because it mirrors similar regulations enacted in Seattle, where minimum pay standards for delivery drivers were raised to approximately $1.63 per mile and $0.70 per minute, according to city records. Platforms responded by adding regulatory fees and increasing consumer prices to cover the higher mandated rates. Order volume declined significantly in the months following implementation as consumers reacted to the added costs. Drivers experienced fewer available tasks overall despite the higher per-delivery pay rates, leading to stagnant or reduced total earnings, according to Reason.
Reed said, “Rates were increased from one dollar eighteen per mile and eighteen cents per minute, and today are one dollar sixty-three per mile and seventy cents per minute. This massive price increase put the minimum earning standard well above minimum wage and the IRS per-mile rate. These new higher rates had an immediate devastating effect on consumer pricing and driver earnings.” According to industry analysis, following Seattle’s implementation of minimum pay ordinances for app-based workers, average ride and delivery prices increased more than 40%. Consumer demand dropped as higher costs led to fewer orders and longer wait times across the city. Independent drivers saw total monthly earnings stagnate or decline because of fewer trips available to complete. These outcomes occurred despite the said goal of raising worker compensation through government intervention, according to Uber Under The Hood.
HB 1273 would prohibit transportation network companies from retaining more than 20% of consumer fares in Colorado, according to the bill text. Similar fare retention caps and minimum pay standards have been proposed in other states following Seattle’s model. Opponents argue such mandates force platforms to raise prices or reduce service in order to comply. The bill was amended during the March hearing and referred to appropriations.
Reed is a longtime gig economy driver who has worked on various platforms since 2016, according to Drive Forward Seattle. She serves as a committee member for the organization, which advocates for independent drivers in Seattle.
