- DoorDash has updated its pay model for workers a month after announcing that it would make changes.
- The company came under fire in July after an article describing its tipping policy led to accusations that it was stealing tips from some workers.
- Under the new model, all customer tips will be passed through to the company’s delivery workers, known as Dashers, beginning next month.
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DoorDash on Thursday unveiled a new pay model in which workers would keep all tips, following criticism of its previous method that withheld some tips from couriers.
Under that method, described in a New York Times article in late July, the company would use tips to make up the difference between workers’ base pay and the “guaranteed minimum” pay they would be promised to accept a delivery. In those cases, tips essentially went to the company.
Beginning in September, the company said, all tips will be added on top of base pay and any promotions like peak pay or challenges.
Here’s how the company says it will work:
“Under our old model, DoorDash would boost pay if a customer left little or no tip,” the company said in a blog post. “Although boost pay was intended to help Dashers, we recognise that it also had the unintended effect of making some customers feel like their tips didn’t matter. Under our new model, every dollar a customer tips will be an extra dollar in their Dasher’s pocket. If you leave a $US3 tip on your order, your Dasher will earn an extra $US3.”
3/ Every dollar customers tip will be an extra dollar in their Dasher’s pocket. Customers can tip before or after the delivery, and the amount DoorDash pays will never vary based on the tip amount.
— Tony Xu (@t_xu) August 22, 2019
The new model will also continue to ensure that Dashers, as the company calls its couriers, will see the details of every order before they choose whether to accept the request, the company said. A base pay will continue to exist for each order.
Amazon, which had also come under fire for similar pay practices, also announced changes to its pay model on Thursday.