- DoorDash came under fire earlier this year for a pay model that sometimes meant workers didn’t actually receive customers’ tips.
- Following the backlash, the company said it was changing its policy to ensure tips were always passed through to workers on top of any delivery minimum.
- Receipts seen by Business Insider as recently as August 19 appear to show the changes have yet to take effect.
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A month after announcing changes to its pay model, DoorDash appears to still be withholding tips from its workers.
Following outcry from angry workers, CEO Tony Xu in late July announced a change to its “guaranteed minimum” pay, saying that tips will always be added on top of a “dasher’s” earnings for every order. Those changes don’t appear to have taken effect.
- DoorDash worker, provided to Business Insider
Receipts provided to Business Insider for orders as recently as August 19 show that tips were not provided in addition to base pay.
“When the order popped up I could see I was guaranteed $7.95,” one Dasher, who requested anonymity for fear of retaliation from the company, told Business Insider, “but since there was a $3 tip, I should’ve got $10.95.”
Workers speaking to Recode also said they experienced the same thing, despite the highly publicized changes made in July.
DoorDash did not immediately respond to a request for comment from Business Insider.
4/ Going forward, we’re changing our model – the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order. We’ll have specific details in the coming days.
— Tony Xu (@t_xu) July 24, 2019
When Business Insider reported on the criticisms in July, a spokesperson said the old pay model – which was adopted in 2017 – was crafted with input from many of the platforms workers, adding that the company contributed more to the guaranteed minimum than customer tips did on 65% of orders.
“Dashers tell us they value knowing the minimum they’ll earn up front, and our model is designed to make the guaranteed minimum fair for every delivery – including the vast majority of orders where DoorDash provides a pay boost to ensure the Dasher receives at least the guaranteed amount,” the representative said.
Other workers told Business Insider that they’re nervous for the the company’s planned acquisition of competing delivery startup Caviar.
“I use caviar on a regular and make a average of 25 dollars a hour per delivery time and tips are included on top of base pay,” one former Dasher who no longer works for the app because of the pay model told Business Insider. “I’m worried they’ll do the same with Caviar if DoorDash successfully acquires it.”
In the wake of DoorDash’s tipping criticisms, Business Insider asked the leading gig-economy companies about their tipping policies. Here’s what they said.
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