Following the backlash against DoorDash after reports that the company, who previously did not pay their employees their tips, is still not implementing the reforms promised by its Chief Executive, DoorDash renews the promises and says that they would start implementing the new payment scheme next month.
In a blog post on its website, penned by Chief Executive Officer at DoorDash, Tony Xu, th company said that they would start implementing the new payment scheme next month in their efforts to work “to strike a balance.”
In the promise made by the company’s chief executive, DoorDash said that they would start implementing a payment policy that would help their dashers, the term they use to refer to their riders, earn more money “from Doordash and overall.”
DoorDash promises that “every dollar customers tip will be an extra dollar in their Dasher’s pocket, and customers will be able to tip at checkout or after the delivery.”
In the past, the company came under fire after an employee, Andy Newman, published an article describing how DoorDash is allegedly “stealing” the tips their customers are giving to their riders.
“If the woman in the bathrobe had tipped zero, DoorDash would have paid me the whole $6.85. Because she tipped $3, DoorDash kicked in only $3.85. She was saving DoorDash $3, not tipping me,” Newman wrote.
Succumbing to the outburst after the publication of the article, Xu apologized to its riders and promised that the company would change its payment policy. He said that change would come to their policy in the “coming days.”
“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,” he wrote in his Twitter account.
Xu said that while they have designed their payment policy to make sure that their riders get paid whether there are tips or none, they totally misunderstood the intentions of their customers in providing the tips to their riders and realized that “what we missed was that some customers who did tip would feel like their tip did not matter.”
Amidst these promises, earlier this week, the company, again, came after fire after reports of not changing their policy one month after they promised to do so have solicited outrage from the internet.
“They’re still stealing tips,” Dawnielle Turner, a DoorDash worker in Cleveland, said in an interview. “Why would you send the email out and have everyone anticipating such a major change?”
Another rider, who refused to be named, said that the company is “trying their best not to pay us.” He also revealed that many riders have started asking their customers to pay them in cash; some of them are even handing out pamphlets explaining the issue and why they prefer to be paid in cash instead.
Now, DoorDash made another promise. They said that they had updated their pay policy where dashers will receive their base pay that is calculated through distance, time and desirability, promotions which include peak pay and bonuses based on challenges, and the tips where riders will earn 100% of the tips given by their customers.
“Under our old model, DoorDash would boost pay if a customer left little or no tip. Although boost pay was intended to help Dashers, we recognize that it also had the unintended effect of making some customers feel like their tips didn’t matter. Under our new model, every dollar a customer tips will be an extra dollar in their Dasher’s pocket. If you leave a $3 tip on your order, your Dasher will earn an extra $3,” the company said in a blog post.
DoorDash admitted that making the change is difficult because “built our model in direct response to feedback from Dashers.” However, they said that while they do the “right” for their dashers, they also need to respect their customers who may feel that their tips are not given to the people they intend it to be given.
“We developed this approach with input from customers and Dashers, including members of our Dasher Community Council. We have been testing the new model this month and refining the details based on the feedback we’ve received from Dashers. We’ll continue to make improvements as we roll it out to all Dashers next month,” said DoorDash.