After Backlash, DoorDash CEO Says Its Drivers Will Receive the Full Tips On Top of Their Base Pay – Next Month

After a workers' rights organization reported in February that the company pays off, the company promised to look into its policies. On August 22, DoorDash CEO Tony Xu said that under the new model, workers will get 100 percent of customers' tips. The new model is set to roll out next month.

In February, Working Washington called out DoorDash for their payment structure. According to the organization, DoorDash paid just $ 1 per delivery, but also guaranteed its workers a base amount that they were guaranteed for that delivery. So, if a delivery was worth $ 10, but the customer did not tip, DoorDash would pay the driver $ 10.

That policy was to protect their drivers from customers who might choose to tip nothing. But if a customer did tip, DoorDash would have that money towards that base amount. In other words, it would be $ 9, the driver would still receive $ 10 – $ 1 from DoorDash, $ 9 from the tip.

"The customer is tipping DoorDash," the organization wrote.

When Working Washington's report was released, I'm sure it's a bonus for the driver. Last month, DoorDash said it was changing its business model, but criticized remarks that, six months after the original report, nothing had changed.

On August 22, Xu will be coming next month. According to Xu, DoorDash will increase the base pay drivers receive to $ 2 minimum, with a potential to earn more than $ 10 on delivery, depending on how long the delivery is expected to take and how far away it is.

In addition, tips will no longer be applied to the base pay. In the example above, the $ 10 delivery would make the $ 10 driver, but the $ 9 tip would mean the driver makes $ 19.

In the post, Xu claims the original model was popular with delivery drivers, and it had improved retention and worker satisfaction.

"We initially resisted a change in the face of Dashers when we rolled out our model in 2017," he wrote.

"We thought we were doing the right thing for Dashers by making them whole, but we did not give them a tip. Xu added.

Xu said that they would be more likely to earn money under the new system, but with a greater variability in the totals. The app will also be ready for delivery.

Some DoorDash critics are not entirely happy with the new system, due to the fact that drivers do not have a breakdown.

"Working in Washington" "It's difficult to be overcompensated." in a statement to CNN.

The system is expected to roll out nationwide in September.