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DoorDash dinged for tipping tactic
SAN FRANCISCO, July 23, 2019 (BSS/AFP) -On-demand food delivery service DoorDash on Monday was taking heat for supplementing people’s pay with gratuities left by customers.
Twitter buzzed with criticism of what some contended was an unfair practice in service industries — using tip money to bolster how much workers get paid and saving company payroll expenses in the process.
People sign on to make DoorDash deliveries, typically take-away restaurant orders, similar to how drivers sign on to smartphone-summoned ride services.
DoorDash refers to its delivery people as “Dashers,” and said they get clearly calculated “guaranteed minimum” pay amounts prior to accepting missions for the company.
“We guarantee Dashers will earn a minimum amount, including tips, for completing each delivery,” a spokesman for the Silicon Valley-based startup said in response to an AFP inquiry.
“Dashers tell us they value knowing the minimum they’ll earn upfront, and our model is designed to make the guaranteed minimum fair for every delivery.”
Under the formula, if a customer leaves no tip through the DoorDash application, the guaranteed amount promised the Dasher comes out of the startup’s pocket
However, if someone leaves a tip in the app, DoorDash is just responsible for the difference.
“And this is exactly why I leave $0.00 for any delivery service tip,” read one of a maelstrom of tweets on the subject.
“When I tip delivery, it’s always cash.”
Cash tips circumvent the application, and therefore the pay calculation process.
DoorDash said that about 15 percent of the time, customers leave no gratuities in the app.
“Whether and how much to tip is up to you, and you always have the option to tip more or less than the suggested amount,” DoorDash said in a message to users at its website.
“After each order, Dashers will be able to see the breakdown in their earnings between the amount DoorDash contributes and the customer tip.”
The guaranteed minimums offered Dashers before they accept deliver assignments is based on estimated time and effort required to complete that delivery, according to the startup.
“Don’t blame the restaurants or third party delivery services,” read another tweet on the hot topic.
“Payroll laws in some states are awful and are to blame.”
BSS/AFP/AU/07:30 hrs