DoorDash announced last month that it would be changing its controversial tipping model. Today it’s revealing the basics of how the new system will work.
Under the past model, Dashers (DoorDash drivers and other delivery people) were guaranteed a minimum payment per delivery, with DoorDash paying a $1 base, then providing an additional payment boost when a customer’s tip wasn’t enough to meet the minimum — a system that made it seem like tips were being used to subsidize DoorDash payments.
Under the new system, meanwhile, DoorDash will pay a base between $2 and $10 (the amount will depend on things like delivery distance and duration), with additional bonuses from DoorDash.
Most crucially, as CEO Tony Xu put it in a blog post, “Every dollar customers tip will be an extra dollar in their Dasher’s pocket.”
Now, you might think that’s how tips are always supposed to work, but Xu said the old system was developed “in direct response to feedback from Dashers,” while the new one will result in “greater variability in total earnings from order to order” (that variability several reasons why tipping is a flawed compensation model in general).
So why change?
“We thought we were
https://contacted.org/2019/08/doordash-reveals-details-of-its-new-tipping-model/
