DoorDash will change the controversial switchover model – TechCrunch

DoorDash CEO Tony Xu has announced via Twitter that the company will change its Dashers compensation model (Doordash drivers and other deliverymen).

The company has been criticized this year for its payment policies. In the current system, the Dasher payment consists of a $ 1 DoorDash base, the customer's tip and, when the first two items fall below the guaranteed minimum, an additional payment surcharge from DoorDash.

In other words, although DoorDash insists that dashers keep 100% of their tips, they start to look like these are used to subsidize payments that would otherwise come from DoorDash. (Instacart has been criticized and sued for similar practices, leading to CEO apologies and policy changes.)

Xu has defended this approach in the past. For example, when the company announced a $ 400 million fundraiser shortly after the outbreak of the controversy, he said the system had been tested "not in a quarter, nor in a month, but in months Before being implemented in 2017.

However, the problem is not gone. Last month, DoorDash tried to fix it, not by changing the system, but by providing more transparency.

In his recent tweets, Xu emphasized that the company has designed the system "to prioritize transparency and revenue consistency, and to ensure that all customers receive their food as quickly as possible". However, he acknowledged that DoorDash "was not right balance."

"We thought we were making the right choice by restoring the integrity of Dashers when a customer left no tip," he said. "What we missed was that some customers who made tip would have the impression that their tip did not matter. "

So, Xu said DoorDash will change this model. The company does not publish all the details yet, but the main change is that "Dashers' revenue will increase by the exact amount specified by a customer on each order".