Technology

Postmates adds fees in Calif. to pay for driver benefits

Diners will see new charges of up to $2.50 that will help cover costs imposed by Proposition 22.
postmates sign
Photograph: Shutterstock

Third-party delivery company Postmates this week added new fees for diners in California to help pay for benefits for drivers. 

The California Driver Benefits fee ranges from 50 cents to $2.50 per order depending on the market. The news was first reported by the San Francisco Chronicle.

Postmates joins DoorDash and its parent company, Uber Eats, in tacking on similar charges in the state.

The fee is intended to help cover benefits granted to drivers under Proposition 22, a ballot initiative that classified app-based drivers as independent contractors. Benefits include a healthcare stipend, insurance to cover injuries from an accident and wages that are at least 120% of the minimum, Postmates said on its website.

DoorDash, Uber and other app-based delivery companies spent millions to support Prop 22, warning that if it failed, the cost of food delivery could increase from 35% to 100% in some markets. The passage of the initiative was a victory for those companies, but they are still raising prices to pay for it.

DoorDash’s new charges amount to a “slight percentage increase” in customer service charges, a spokesperson said last month. Uber Eats’ vary depending on the city, from 99 cents in San Francisco to $2 in Los Angeles.

Postmates had not responded to a request for comment as of publication time. 

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