DOORDASH - TIPPING MODEL & CONTROVERSY | HOW SHOULD YOU TIP YOUR DOORDASH DRIVER?

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doordash tipping model

How does the app work?

The app does not have any complex working methodologies, and it is pretty simple to use. Doordash acts as a medium, disguised as an app, to connect you to your favourite restaurants seamlessly through your mobile.

All the restaurants that have partnered with the app are displayed on the screen and you can make your best selection according to your need. After initiating the orders to the particular restaurant you have chosen to order from, the order is confirmed and Doordash sends a dasher, a delivery driver, right to your doorstep with the food delivery. You can also decide how much to tip a Doordash driver .

Allegations that recently surrounded the DoorDash tips

The app has been people’s number one choice for their meal-timing across the US and Canada until something not conforming to its perception showed up. The app has an inbuilt system which asks you to leave a tip for the dasher. The question is, does Doordash give tips to drivers?

Allegations started making the rounds claiming that the tips left for the dasher were actually, through a mischievous model of payment, going to Doordash instead of the delivery workers . This invited immense outrage from the public compelling the company to make complete revelations as to how their pay-model really worked.

The old pay model (concerning the Dashers)

We can walk you through the same in the simplest manner possible. If you have used the app to order your favourite food, you must have noticed that at the time of checkout, the app asks you to leave a tip. Here is how it looks:

how much to tip a doordash driver

It is safe to say that Doordash never really forces you on how much to tip a Doordash driver. You will always have the option of manually entering “0” as the amount of bonus. Customers can decide whether to leave a tip or not, and there is always a choice. But the availability of the option inevitably makes you inclined towards leaving a small tip to contribute to the earnings of the delivery-persons.

The facet of the pay model that actually changed the game was that the company showed the customers as presumptuous for assuming that the tips were being “added” to the wages of the delivery persons. When looked into, properly, it was found out that in reality all these tips were a way to fill the wallets of the company and were never really meant to act as a bonus to the dashers.

What went wrong?

We might need to consider an instance which makes it quite clear as to how the pay model actually worked.

Let’s assume that the company pays the dasher a minimum payment of 6 dollars for every delivery made. While you checkout of the app, the app asks you to leave a tip. You being the kind soul that you are, give a tip of hefty 10 dollars believing that it would directly go the dasher’s pocket, proffering him with considerable financial assistance.

What you contemplated was that the dasher will be provided with a sum total of $16 (6+10), but unfortunately for the dasher and fortunately for the company, this went to the company; it was only the difference between the tip amount and the guaranteed minimum that was paid to the delivery person along with his regular remuneration amount.

Where you expected the dasher to receive 16 dollars, he only received $6 + $(10-6), making it a total of 10 dollars. Your 6 dollars that you paid out of kindness flowed directly to the accounts of the company.

Not only was this news eye-opening but was also a proof of how in big economies like the US and Canada, big companies slyly exploit their blue-collared employees and deceive their customers.

It was quite imperative that the company was about to attract considerable denunciation from the public who unknowingly bestowed them tips, as well as the dashers who were meant to receive the tips in reality. The company tried to defend itself by saying that it never promised that the tips were an addition to the regular wage of the delivery persons. So, should you tip your Doordash driver?

The news that surrounded the app

doordash new pay model

The Doordash CEO, Tony Xu, said in a Doordash blog post:
“We did not launch our current model to pay dashers less.”

While according to CNN, the company was coerced to change its tipping policy and how that policy was aimed at benefiting the dashers effectively.

Following this, Tony Xu tweeted,
“Going forward, we’re changing our models—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.”

According to the reports and articles published by business insider , it was after the considerable backlash that Doordash received that the company decided to alter its existing tipping policy.

In July 2019, an article made rounds which made the revelation on how the tips never really went to the dashers’ pockets. It was after this article that consistent accusations affected the business of the company. The company then admitted that some of its customers felt that the tips are given by them never really mattered. Even though the company did not completely agree with this ideology, it stated that it deemed it necessary to make a few changes.

Tony Xu then tweeted,
“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.”

The altered model

The tweet made it quite clear that from now on, the tips that were earlier consumed by the company will now reach the pockets of the dashers. It was after a number of amended policies, that made the DoorDash workers furious that this policy was framed and claimed to be executed immediately.

The new model came across as a better option when the obscurity regarding the base pay, or as the company calls it ‘minimum wage,’ was cleared out. It was assured that the base pay will still exist and will be paid to the delivery workers , in the company’s terminology, ‘its couriers,’ in the same manner as earlier without any transformations.

The new model-cum-policy had another aspect which seemingly gives a wider choice as well as greater liberty to the dashers of the company. As per the new model, the dashers will now be furnished with complete information about the orders received by the company and expected to be delivered by the particular dasher. The ball will be in the dasher’s court. Because now dasher might choose to reject or accept the order after making certain considerations like distance, delivery fees, and tip amount among other things.

This assured that the tips from the customers’ end will now really be an “addition” to the earnings of the dashers. This calmed down the Doordash workers and at the same time relieved the customers of the uproar that they held towards the corporation.

DoorDash CEO Tony Xu used this opportunity to say that the company always kept the welfare of its Dashers in mind while framing any pay model.

Smart ways to tip from the next time

After having read all of this, you might be perplexed as to whether you should tip through such apps at all. Well, it cannot be denied that there exists a chance of being deceived and the tip given by you may never reach the intended receiver. But there exist a few considerations that you can take into account before tipping the drivers using any online food delivery apps.

The two of these stand as the most prominent measures that are convenient as well:

Don’t hesitate to skip the tipping options

Feel free to skip or put 0 in the app for tips. However, You can assimilate the necessary guidelines, according to the app and use them to determine how much should you tip Doordash. These guidelines furnish you with different methods which you can adopt to ensure that the company is not able to absorb the tips and the extra money goes to dashers exclusively.

Pay the tips in cash

This method assures you that the tips did not get diverted to the food app company and reached the dasher safely. It will then be up to the dasher as to how he uses the tip. Paying the delivery workers by cash has another facet to it, which makes it a better medium for tipping.

When you pay some extra amount to the dasher under the name of a tip, he can remain well aware of the amount that he is bound to receive as a tip. This keeps him cautious of his share and prevents deception by the company at a major scale. Can Doordash drivers accept cash tips? There isn’t any reason for them not to.

How much to tip a Doordash driver?

15% of the total order money is usually considered to be a fair amount of tip to the dashers; you might also consider how much the dashers has to travel beside the flights of stairs he needs to climb before providing you with your order at the doorstep. Thus, if you wish to eat your food without having to worry about who your tip really went to, pay the dasher the tip directly in the form of cash.

Can you tip on Doordash after delivery?

Yes. However, you have to file a support case in order to adjust your tip. If you want to tip your Doordash worker in cash, you can manually enter the tip amount to be zero during check out, and when the delivery man arrives, you can simply hand him the amount you want to tip. This keeps you safe, your money protected, and the dashers’ pocket fulfilled. Here are some pre-built options like in the image below.

doordash tipping options

CONCLUSION

There is no denying that the reforms made assure better financial treatment to the dashers. Still, we cannot overlook the dashers of the DoorDash app are independent contractors and not employees of the company. This makes it clear that they are not protected under federal or state laws. This calls for the dashers and us to be extra cautious regarding the policies of the government. Scrutinizing trivial aspects of the payment model has become more necessary than we realize.

After the outrage from the customers as well as the dashers, the company made desirable changes in the policy, but it fails to scrape off the aspect of the exploitation of low-pay delivery workers in humongous economies. While the company claims to have made changes to ensure the best for the dashers, the tipping policy still remains quite mysterious and has failed to ward away the controversy that has attached to it.

We might have been ensured that the company will pay the tip as an extra amount to the base pay, but there exists no guarantee that the company will not snatch any dollars from the share of the dashers. This still leaves us in bafflement when it comes to how to pay and when to pay. So, how do you tip your Doordash driver?

The best-discovered method so far, to tackle this, is that the tips should be proffered in terms of cash rather than its payment online. We cannot help but remain in the dark when the tips are paid online. When we pay the dashers directly without mentioning any tips in the app, we are assured of the receipt of the tip by the dasher without any diversions.

Does Doordash give tips to drivers?

Considering the betterment of the dashers, it can be noticed that the company is bound to make a 1 dollar payment to the dashers besides their regular remuneration, in the case where the tip left by the customer is considered to be quite meagre. If you decide to tip in cash, it becomes no less than a win-win situation for the dasher, which remains our ultimate aim for tipping.

While it is still hard to state the purity level of the latest pay model that company has demonstrated, we can say that it holds better circumstances for the dashers when compared to the previous pay model for them.

It is quite fair and appropriate to reward your delivery persons with adequate tips as they are the ones with the major trouble and the minor pay. Just paying them through a tip doesn’t suffice anymore; you need to ensure that they are blessed with access to receive the tip as well.

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