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- In a survey by US Foods, delivery men and customers agree that $ 4 is a good tip for food delivery people via apps like Uber Eats, Postmates and other services. of food delivery.
- However, 60% of drivers surveyed said they were not informed or did not know enough.
- Tips are more essential than they have ever been, as carpooling drivers are afforded fewer protections and benefits than delivery drivers traditionally employed by restaurants.
- Visit the Business Insider home page for more stories.
Ordering from a delivery app is becoming more and more a part of everyday life, with applications like Postmates, UberEats, Grubhub and many other services offering services in cities across the United States. And since many depend on services like these to earn money, tips are no longer just for eating out.
A new study by the US Foods restaurant supplier highlights some trends in carpool delivery drivers, from the average amount customers are willing to spend on delivery to the amount of gratuity that drivers consider fair.
How much should you tip a delivery person?
There is one thing the average guest and the driver agree on: a tip of $ 4 is right.
However, there are a few tips that customers consider when it comes to tips. Data from US Foods shows that customers are on average willing to pay $ 8.50 in total for additional delivery charges, including tips, shipping and service charges. Thirty-five percent of respondents wanted to spend up to $ 5 on delivery and 37% were willing to pay between $ 6 and $ 10. But, on Uber Eats, delivery charges can easily engulf more than half of those ranges even before a tip, reaching $ 3.99 in New York, according to The Verge's Shannon Liao.
And it seems that many do not give as much tips as they say. The survey also shows that 60% of drivers are constantly irritated by the fact that their tips are low or that they receive no tips. And in the entertainment economy, tips have never been so important to success.
The concert economy has made the tip a crucial one
Carpool drivers are not employees of the company for which they drive. They are more like independent contractors. Delivery drivers employed by a particular restaurant may have access to benefits, health insurance and even costs such as gasoline, but carpooling drivers do not have these items.
And delivery costs are not a big help for drivers, either. Although drivers often get a fixed amount to pick up and drop off, and are paid per kilometer, they will likely have to share a share of it with the platform for which they drive. The reduction of Uber can reach 25%, depending on the city, for example. However, 66% of US Foods survey clients said the fees were affecting the amount of their tips.
And then, there is the mystery of guaranteed minimums. This principle essentially guarantees that a driver will earn a certain amount, regardless of the amount of a customer's tips. Employee delivery drivers see this in the form of a tip credit or the amount that an employer would pay to reach the minimum wage if an employee did not receive any tips.
But for delivery applications such as Doordash, this is not the case: an advice in the application can be directly addressed to the company in order to meet the guaranteed minimum of the driver. As Andy Newman reports in the New York Times, a board can often consider this guaranteed minimum to prevent the company from paying more for its drivers. The US Foods survey shows that only 27% of people pay money, but the money could be the perfect way to tip.
While half of all clients surveyed said that they tip on a case-by-case basis, tips are an essential part of the income of every driver who offers carpool delivery services. Since these workers do not benefit from conventional employment protections, often share fees with their business and may not receive tips in excess of their guaranteed minimums, carpool drivers are more dependent than ever before.
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