DoorDash reveals its new pay model for workers after being accused of stealing tips
- DoorDash has updated its pay model for workers a month after announcing that it would make changes.
- The company came under fire in July after accusations of stealing tips from some workers.
- Under the new model, all customer tips will be passed through to “dashers,” beginning next month.
- Visit Business Insider’s homepage for more stories.
DoorDash on Thursday unveiled a new pay model in which workers will keep all tips, following criticism of its previous method that withheld some tips from couriers.
The changes were first announced last month by CEO Tony Xu. In the meantime, some tips continued to fall through the cracks, angering some workers who spoke to Business Insider.
Beginning in September, the company said, all tips will be added on top of base pay and promotions, the company said, in addition to any promotions like peak pay or challenges.
Here’s how it will work:
“Under our old model, DoorDash would boost pay if a customer left little or no tip,” the company said in a blog post. “Although boost pay was intended to help Dashers, we recognize that it also had the unintended effect of making some customers feel like their tips didn’t matter. Under our new model, every dollar a customer tips will be an extra dollar in their Dasher’s pocket. If you leave a $3 tip on your order, your Dasher will earn an extra $3.”
3/ Every dollar customers tip will be an extra dollar in their Dasher’s pocket. Customers can tip before or after the delivery, and the amount DoorDash pays will never vary based on the tip amount.
— Tony Xu (@t_xu) August 22, 2019
The new model will also continue to ensure that “Dashers,” as the company calls its couriers, will see the details of every order up front so that they can choose to accept or decline the request, the company said. A guaranteed base pay will continue to exist for each order.
Amazon, which had also come under fire for similar pay practices, also announced changed to its pay model on Thursday.
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- Uber’s CEO says the company considered buying Caviar before DoorDash snapped up the competitor for $410 million
- Amazon is no longer cutting into drivers’ tips to pay their base wages
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