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DoorDash announced last month that it would alter its controversial tipping pattern. Today, he reveals the basics of how the new system works.
Under the previous model, Dashers (DoorDash drivers and other deliverers) were guaranteed a minimum payment per delivery, DoorDash paying a base amount of $ 1, and then providing an additional payment surcharge when the tip of the customer was not sufficient to meet the minimum – a system that gave the impression that tips were sent used to subsidize DoorDash payments.
In the new system, DoorDash will pay a base between 2 and 10 USD (the amount will depend on items such as distance and delivery time), with additional bonuses of DoorDash.
More importantly, as CEO Tony Xu said in a blog post, "Every dollar that customers pay a dollar will represent an extra dollar in Dasher's pocket."
Now, you may think that the tips are always supposed to work, but Xu said that the old system had been developed "in direct response to the comments of Dashers", while the new system would result in "greater variability of the total gains of an order to the "Other" (this variability is one of the many reasons why is an imperfect compensation model in general).
So why change?
"We thought we were making the right choice for Dashers by integrating them if a guest left no tip, but the comments we received recently made it clear that some of our guests who left tips had the impression that their tips did not matter. " Xu said, "We realized that Dashers would not be able to continue doing well, if some customers thought we were not doing it as well, so that all our users had a good experience of DoorDash, we needed to find a better balance. "
In addition, he said, "The dashers are going [now] earn more money on average – both from DoorDash and in general. "
The company plans to apply these changes to all Dashers next month.
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