Following backlash, food delivery app DoorDash drops policy of pocketing tips meant for workers

Following backlash, food delivery app DoorDash drops policy of pocketing tips meant for workers


They weren’t just dashing doors; they were dashing the cash.  Tech-savvy foodies who thought they were being kind and generous for adding tips for the delivery workers on their favorite app got a rude awakening when a published report revealed otherwise  Following backlash, DoorDash, the nation’s largest on-demand food delivery app is promising to change its policy of pocketing the tips customers thought were meant for workers  On Tuesday, the company’s CEO, Tony Xu, addressed the angry feedback and announced the new business model on social media  “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,” Xu tweeted “We’ll have specific details in the coming days.”  DoorDash refers to its delivery workers as Dashers and has more than 400,000 nationwide  Xu said that a year of research with thousands of employees led DoorDash to build a “pay model to prioritize transparency, consistency of earnings, and to ensure all customers get their food as fast as possible ”  Under the policy — which was previously maligned — DoorDash began offering a guaranteed minimum payment for a delivery A tip paid through the app went mostly to offsetting DoorDash’s contribution toward the guarantee, instead of increasing the Dasher’s pay The system was devised to keep workers’ pay consistent when customers tipped little or nothing  Xu admitted that it was clear from recent feedback that they didn’t “strike the right balance ” Most Read Boxer Maxim Dadashev, who suffered severe brain injury during Friday fight, has died at 28 Mariano Rivera responds to backlash, defends his support for Donald Trump Iowa carpenter died a secret millionaire, willed his fortune to sending 33 strangers to college  “We thought we were doing the right thing by making Dashers whole when a customer left no tip What we missed was that some customers who *did* tip would feel like their tip did not matter,” he continued  “Customer obsession and getting 1% better everyday are core values at DoorDash These beliefs have led us to improvements in the past and they serve as our guide for the future ” DoorDash’s competitors such as Instacart and UberEats reportedly don’t employ such deceptive tipping policies  ChowNow.com CEO Christopher Webb told CBS News that DoorDash was started in 2012 and stood out from other food delivery apps by charging restaurants and regional chains a flat fee for software and online marketing tools  The company is valued at $7.1 billion.

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