DoorDash commissioned PPG to research the economic impact of forcibly reclassifying independent app-based delivery workers in Minnesota to become traditional employees.
Our report concludes that the increased cost of this policy change would mean prices for Minnesotan customers would rise by 20%–29%, leading to a 11%–34% decline in customer demand for app-based delivery services.
The decline in demand for app-based delivery services would reduce the working hours available for delivery workers in Minnesota by a total of 21,000–67,000 hours per week, causing workers to lose $30 million to $96 million in annual earnings.
We expect app-based delivery companies to employ only a fraction of the original workforce in order to minimize the large fixed cost of hiring each worker as a traditional employee. Workers would be required to work a fixed number of hours per week, whereas currently they can work as little or as much as they like.
Overall, we estimate that 57,000–59,000 fewer Minnesotan workers would have the opportunity to earn income on app-based delivery platforms, representing a loss of 88%–91% of current earning opportunities available to Minnesotan workers.
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Comments
adamgordon
Thanks for this great post!
miaqueen
Thanks for sharing 🙂