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Despite the fallout from Instacart's so-called "tip theft" earlier this month, DoorDash is defending its own policy of tipping for workers to supplement their base salary. If that sounds slimy, that's it. It's also a good reason to always tip in cash.
The CEO of the company, Tony Xu, told Bloomberg Thursday. The only reason anyone is upset that DoorDash is implementing this policy is that other companies have been called for similar practices. He explained to Bloomberg that the company was using this model "for two years now, and it is unfortunate that the activities of other companies have misinterpreted what we have been doing for two years."
Here is the thing though. DoorDash, a food delivery service, relies on the work of its subcontractors, called "Dashers." When people add extra tips to their delivery service tab, they reasonably assume that they are tipping the delivery person rather than the company. Previously, DoorDash had explained to Bloomberg that the model "was designed to ensure that Dashers would be paid more equitably for each delivery," but DoorDash did not suffer exactly the money.
In fact, Xu spoke with Bloomberg this week as the company announced that its valuation had soared to $ 7.1 billion, which according to the site, increased by about $ 6 billion less one year. So, while DoorDash is making a lot of money, its workers are shaving ends. It is the very practice of Instacart which tried to try before the outcry led to the overthrow of politics.
"Tips should always be separated from Instacart's contribution to buyers' pay," Apoorva Mehta, CEO of Instacart, wrote in a Medium article in February, in response to the growing backlash, which is correct. In addition, Instacart increased the base salary of its workers and paid its customers hard-earned tips.
Nevertheless, DoorDash – perhaps encouraged by the fact that Amazon would have also engaged in this incredibly dark practice – seems to remain largely indifferent to criticism. (Although getting a company to change its unfair pay practices has certainly worked before.) Meanwhile, pay a tip. For everything. All the time.
[Bloomberg]
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