In several states, packages from e-commerce giant Amazon (AMZN) or meals from food delivery service DoorDash (DASH) may now come with an extra hidden cost, according to CNBC. Interestingly, the new fees are not from the companies themselves, but from the government. In fact, Colorado charges $0.28 per delivery while Minnesota adds $0.50 on orders over $100. Other states like New York, Hawaii, and Ohio are also considering similar fees of up to $0.75. These so-called “doorstep taxes” are projected to raise billions over time, with Colorado alone expecting $5 billion in revenue over the next decade.
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However, those aren’t the only hidden fees that governments are charging. Other examples include recycling fees for electronics and “neighborhood fees” at airports, where Starbucks customers may find an extra quarter added to their bill. Philadelphia’s airport, for instance, has a 3% surcharge on all concessions. As a result, the number of government-imposed fees has exploded from 400 in 2019 to 1,400 today, and experts expect them to keep rising because most consumers don’t notice or push back. Unsurprisingly, legislators argue that the money is needed in order to maintain infrastructure.
Still, critics warn that these “stealth taxes” hurt families and small businesses the most. More specifically, firms like Amazon and DoorDash oppose delivery fees because they disproportionately affect lower-income households. Advocates also point out that elderly and disabled residents often rely on delivery for food and medicine. Yet, lawmakers see fees as a replacement for declining gas tax revenue and a way to curb unsustainable package traffic.
Which Delivery Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that AMZN stock has more room to run than DASH. In fact, AMZN’s price target of $267.88 per share implies 22.1% upside versus DASH’s 12.9%.
