APD News
Close

APD NewsAPP, New stage!

Click to download

DoorDash claims drivers made an average of at least $17.50/hour on deliveries in 2018

Science

2019-03-13 21:44

DoorDash">DoorDash has been under fire as of late for its practices around payIndex.html" target="_blank">Ing drivers. Index.html" target="_blank">In an email to drivers today, obtaIndex.html" target="_blank">Ined by TechCrunch, DoorDash said drivers received an average of $17.50 or more per hour on a delivery Index.html" target="_blank">In 2018. That figure, of course, does not take Index.html" target="_blank">Into account cost of mileage, payroll taxes for 1099 Index.html" target="_blank">Independent contractors and other expenses.

Index.html" target="_blank">In the email, with “ListenIndex.html" target="_blank">Ing to the Dasher community” Index.html" target="_blank">In the subject lIndex.html" target="_blank">Ine, DoorDash CEO Tony Xu notes the level of recent discussion pertaIndex.html" target="_blank">InIndex.html" target="_blank">Ing to DoorDash’s pay model. He goes on to defend the company’s practices, sayIndex.html" target="_blank">Ing “we contIndex.html" target="_blank">Inue to hear from many of you that the model works: you know how much you’ll receive Index.html" target="_blank">In advance, you receive the guaranteed mIndex.html" target="_blank">Inimum even if the customer doesn’t tip…”

He does add, however, “But we’ve also heard from some who expressed confusion about how pay is calculated and what happens with tips.”

Index.html" target="_blank">In the comIndex.html" target="_blank">Ing weeks, DoorDash said it will launch surveys and organize roundtables for drivers to share their thoughts and concerns. Index.html" target="_blank">In the email, DoorDash provides a lIndex.html" target="_blank">Ink for drivers to sign up to be Index.html" target="_blank">Included. From there, Xu said DoorDash will look over the feedback, report what it’s learned and “what changes we plan to make Index.html" target="_blank">In response.”

DoorDash currently offsets the amount it pays drivers with customer tips. DoorDash describes its payment structure as follows: $1 plus customer tip plus pay boost, which varies based on the complexity of order, distance to restaurants and other factors. It’s only when a customer doesn’t tip at all, DoorDash-reveals-how-much-it-relies-on-customer-tips-to-pay-its-workers">which DoorDash told Fast Company happens about 15 percent of the time, that DoorDash is on the hook to pay the entire guaranteed amount.

This current model was the result of “months of testIndex.html" target="_blank">Ing” and surveys of thousands of Dashers. I’ve reached out to DoorDash and will update this story if I hear back.

DoorDash-subsidizes-driver-wages-with-tips/">DoorDash subsidizes driver wages with tips