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Don't tip your delivery driver? You're going to wait longer on that order, warns DoorDash

2024-12-24 04:02:55 source: Category:Finance

DoorDash has entered the chat to share its stance on tipping, adding new pop-ups for people who put $0 on that tip line. Already a point of contention between the company, drivers and customers, this new feature has seemingly caused a split amongst the app's users.

Tipping culture is a hot topic in America. The U.S. approach to tipping is markedly different than other Western countries, something any social media user can attest to after scrolling through a few videos of flabbergasted Europeans recapping trips to the states.

A survey compiled by company Blueprint in partnership with OnePoll found that as of September 2023, close to half of Americans are tired of tipping, with a majority (63%) feeling too many places are asking for tips. Even so, the Fair Labor Standards Act still only mandates tipped workers make a minimum base wage of $2.13 an hour, though these numbers can vary from state to state and company to company.

DoorDash has apparently taken a stance in favor of tipping with the addition of new warning messages. When people attempt to place an order without adding a tip, a message appears on the screen, saying in bold lettering: "Orders with no tip might take longer to get delivered – are you sure you want to continue?"

Below, the message continues, "Dashers can pick and choose which orders they want to do," the notification reads. "Orders that take longer to be accepted by Dashers tend to result in a slower delivery." This notice is accompanied by two button options to "add a tip" or "continue without tip."

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DoorDash's opaque payment model

DoorDash has historically been criticized for a lack of transparency around pay, causing the company to change their model in 2019. Even so, the merits on which pay is calculated are still unclear.

According to DoorDash's website, a combination of base pay, promotions (such as peak pay when it's busy) and tips make up a Dasher's total earnings. Base pay ranges from "$2-10+" and depends on the "estimated time, distance, and desirability of the order."

In theory, deliveries that require longer travel distances and times pay more on the base level to compensate drivers for the gas and time spent completing the order. Less desirable deliveries likewise come with a premium to encourage Dashers to pick them up. Some workers also have the option to select the "earn by time" mode which splits pay into an hourly wage.

The changes have not solved all the issues, however, according to anecdotes and available data. In 2020, one study by Working Washington evaluated the pay of 229 dashers around the United States and found that even post-2019, workers were making an average of $1.45 an hour after factoring in the costs of mileage, payroll taxes and lost time spent waiting for the app to offer the next gig.

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Customers react

Usurpingly, netizens were just as split on this practice as they are on tipping at large. X, formerly known as Twitter, was filled with comments arguing over where the root of the issue lies and who is responsible for solving it.

Some believe Dashers' reliance on the customer to supplement their pay is indicative of failure by DoorDash, a $16.8 billion company that should be offering more up front to workers.

Others argued that tips are meant to reward and reflect good service and therefor shouldn't be a prerequisite to receive it. Tipping beforehand is not standard practice elsewhere, they said.

Other posters, however, said delivery services are a luxury and therefore should only be used if you're able to properly compensate drivers for their time.

Still others pointed out that whether you agree with tipping as an overall practice, if you choose to use a service you know requires tipping, you are knowingly taking advantage of workers providing a service for you.

Dashers themselves even chimed in, letting customers on both sides of the aisle know what the reality is for them on an average workday and offering a glimpse into what they see on their end of the app.

Users of the r/DoorDash subreddit, who are largely Dashers themselves, chimed in as well, some praising the move while others said it was a distraction from the bigger problem.

"Wonder HOW MANY no tip customers had to complain and how many drivers refused those orders for Doordash to take this step. This is basically 'tip or beware,'" said one comment.

"Several restaurants in my area have said they normally have to throw out food because nobody ever picked it up, we have tons of people that order 20 miles away and tip nothing so I believe it," read another.

Some expressed dissatisfaction with the company's practices, saying, "They lower our base pay and then tell customers to tip more...the nerve of this damn company" and "but they still hide the total amount from drivers so how does this help?"