Core Viewpoint - DoorDash is increasing service fees for deliveries in Seattle due to new city regulations affecting app-based worker pay and account deactivations, which the company claims are leading to higher operational costs [1][2][5]. Group 1: Service Fee Increase - The specific amount of the fee increase has not been disclosed, but it will take effect later this month, impacting customers already facing high delivery costs [2]. - This is not the first price hike; DoorDash previously implemented a flat $5 service fee following a 2022 law guaranteeing minimum wage for app-based workers in Seattle [7]. Group 2: Impact of Regulations - Seattle's law mandates that delivery workers earn nearly $30 an hour before tips and mileage, which is significantly above the minimum wage [5]. - The company has reported a substantial decline in business due to these regulations, with Dashers receiving half as many delivery offers and experiencing three times longer wait times for potential deliveries [8]. Group 3: Financial Performance - DoorDash reported operating at a loss in Seattle in 2024, despite generating $10.7 billion in revenue nationwide [10]. - Local businesses in Seattle experienced a 2% drop in revenue, contrasting with a 10% increase in cities like Denver, Portland, and San Francisco, where service fees are lower [10].