DoorDash, like other food delivery platforms, has faced criticism in the past for their tipping policies. One of the primary criticisms is the fact that DoorDash used to “hide” tips from drivers, which meant that customers’ tips were not being used to increase drivers’ base pay.
The reason DoorDash used to hide tips was to incentivize drivers to accept lower-paying orders. DoorDash’s pay model was based on a “guaranteed minimum,” which was the lowest amount of money that DoorDash promised drivers they would make for completing an order. If a customer tipped well, DoorDash would use the tip to cover part of the guaranteed minimum, which meant that DoorDash would pay less for the order. This led to situations where customers thought they were being generous by tipping well, but their tips were actually being used to reduce DoorDash’s costs instead of increasing drivers’ pay.
DoorDash’s decision to hide tips was based on the assumption that drivers would be more likely to accept lower-paying orders if they did not know how much they were going to make in tips. By hiding tips, DoorDash was able to keep its costs down and increase its profit margins.
However, this policy was widely criticized by drivers and customers alike. Drivers felt that they were being exploited, as they were not receiving the full value of the tips that customers were leaving for them. Customers also felt that they were being deceived, as they thought that their tips were going directly to the drivers.
In response to the criticism, DoorDash changed its tipping policy in 2019. The company now uses a pay model that includes tips in drivers’ base pay. Under the new policy, the guaranteed minimum is still in place, but any tips that customers leave are added on top of the guaranteed minimum. This means that drivers are guaranteed to make a certain amount of money for each delivery, and any tips they receive go directly to them.
While DoorDash’s new policy has been generally well-received, some drivers still feel that they are not being fairly compensated. Critics argue that the guaranteed minimum is still too low, and that drivers are not making enough money to cover their expenses. Some drivers have also expressed concern that the new policy may discourage customers from leaving tips, as they may assume that their tips are not needed to ensure that drivers are being fairly compensated.
Overall, DoorDash’s decision to hide tips was based on a business strategy aimed at reducing costs and increasing profits. However, the policy was widely criticized for being deceptive and exploitative. In response to the criticism, DoorDash changed its tipping policy to ensure that drivers receive the full value of the tips that customers leave for them. While the new policy has been generally well-received, some drivers and critics still feel that more needs to be done to ensure that drivers are being fairly compensated.
