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DoorDash commissioned PPG to assess how proposed Australian industrial relations changes would affect workers, consumers and small businesses.
12 – 35%
Rise in prices for rideshare and app-based delivery services
$770M – $1.2B
Annual fall in consumer spending on retail, food & beverage and transport
288K – 864K
Hours of platform work lost each week
$262M – $422M
Annual earnings lost by rideshare and delivery workers
$241M – $376M
Annual sales lost by small businesses
27K – 82K
Australians no longer able to earn through on-demand platforms (6–19% of workers)
Key findings at a glance
HOW HIGHER PLATFORM-WORK COSTS COULD FLOW THROUGH THE ECONOMY
The proposed industrial relations framework could increase the cost of providing rideshare and delivery services. The analysis traces how those additional costs may move through prices and consumer behaviour before affecting workers, merchants and wider economic activity.
HIGHER PRICES COULD REMOVE MORE THAN $1 BILLION IN ANNUAL SPENDING
PPG estimates that the resulting decline in rideshare and delivery activity could reduce Australian consumer spending by more than $1 billion each year.
Figure 1: Modeled annual reduction in consumer spending ($)
Price rises of 12–35% are estimated to reduce demand for rideshare and delivery services by 6–19%, lowering spending on retail, food & beverage and transport by $770 million to $1.2 billion a year.
Lower estimate
$770M
Upper estimate
$1.2B
Note: Annual reduction in consumer spending across retail, food & beverage and transport. Range reflects price increases of 12–35% and a price elasticity of demand of −0.55. Source: PPG, Australian Government Industrial Relations Changes (February 2024), Fig. 3.
The demand channel: The economic effect is driven not only by what each customer pays, but also by how many rides and deliveries consumers choose not to purchase after prices increase.
