doordash pockets tips meant for employees

[spartaman64]

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Virtually all these companies, including Uber Eats, DoorDash, Instacart, and Grubhub, give customers the option to tip. But two of them — DoorDash and reportedly Amazon — are sometimes using that tip money to cover what they would have had to pay drivers anyway. Despite intense backlash in February that prompted Instacart to change a similar policy, DoorDash and Amazon are, as many see it, continuing to dip into the tip jar.

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Say, for example, that you’re a DoorDash driver who is guaranteed a minimum of $10 to deliver a burrito to a customer’s house. The customer tips $5 for the burrito. Instead of receiving $15 from DoorDash, you could receive as little as $11 total. That’s because DoorDash only guarantees $1 out of its own pocket for each order. Anything extra, the company makes up for in tips.

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DoorDash and Amazon’s tip policies have continued to upset many customers who feel that the companies are misusing tip money and cheating their workers. Some have vowed to tip only in cash. San Francisco has opened an investigation into whether the policies break local labor law. And in California, a proposed law would likely compel gig economy companies to classify workers as employees, which would guarantee them a minimum wage (separate from tips) and other benefits.

Quote

Update 9:59 p.m. PT 7/23: DoorDash announced it is changing its tipping policy to stop subsidizing its workers’ base pay with customer tips. The company’s CEO, Tony Xu, announced the changes in a series of tweets posted on his personal account Tuesday night.

“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,” wrote Xu.

Xu stated that more specifics on the changes will be announced in the coming days; for now it’s unclear if the company will change its policy of quoting workers a guaranteed minimum amount if they accept a job. The company did not immediately respond to a request for comment.

source: https://www.vox.com/recode/2019/7/23/20706393/doordash-tips-gig-economy-amazon-instacart-uber-eats-explained-ab5 

 

This is sort of "old" news but I haven't seen anyone make a topic yet and I really wanted to discuss about this. I've never used doordash but I have used ubereats so i'm going to speak from an ubereats sort of perspective and they probably have pretty similar models. One time i was hanging out with my friend and we decided to do a few deliveries for ubereats for fun and he got paid about 11 dollars per delivery about the same as doordash. Ubereats has a delivery fee of about 4.99 you might say hey wait a minute they charge 4.99 and then pay the driver 11 how do they earn money well they charge the restaurant a commission fee of about 20-30%. For ubereats if you tip while placing the order uber takes a cut also while if you tip after the delivery they don't take a cut so thats probably why my friend never received a tip and not as he was complaining about that people were being stingy lol. As bad as this seems this is actually par for the course in the industry as this is common for another group of people who deliver food, albeit over a much shorter distance and not in a car, waiters. A lot of employers factor tips into their waiters' minimum wage and I don't see a lot of these articles talking about that. I don't really agree with California's push to classify them as employees because then doordash can mandate when they work and how long they work when many people do not use doordash as their main source of income and as something to do on the side and classifying them as employees while giving them a minimum wage would put an end to that. I'm a bit torn on this issue on one hand if we out law this then prices will rise. On the other hand man does this feel unfair to the workers. 

[suicidalfranco]

tfw you are in italy and never heard of tips

[minibois]

3 minutes ago, suicidalfranco said:

tfw you are in italy and never heard of tips

From my experience I can say tipping is starting to become the norm in even Europe.

It's not as ridiculous as in the US though, where you're basically required to tip (Because the employees are paid too little).

 

I heard from someone who went in a cruise that for every purchase you made, there would be a 20% tip added automatically. The only way to avoid this (or alter this percentage) was by standing in a long line on day one to change it...

 

So... I guess tipping is here to stay, where companies either don't pay their employees a good wage or where they make it seem that way just to take that money.. yay...?

[Drak3]

1 minute ago, Minibois said:

It's not as ridiculous as in the US though, where you're basically required to tip

You really aren't.

 

2 minutes ago, Minibois said:

(Because the employees are paid too little).

Tipped wage law requires employers to compensate if wage + tips is less than federalno tipped minimum wage. 

[suicidalfranco]

7 minutes ago, Minibois said:

From my experience I can say tipping is starting to become the norm in even Europe

frankly not really seeing it here

[ARikozuM]

Time for a federal minimum wage that includes servers and tipped workers. 

 

Anyone that hates Social Security and Medicaid should look at this and say "NO! [company/restaurant] can't do that because you're asking me to pay for what you're not paying". 

[Guest]

10 minutes ago, Minibois said:

From my experience I can say tipping is starting to become the norm in even Europe.

I disagree. Not later than yesterday I left a "salon de thé" without tipping because the service was so unfriendly.

And it's not a question of a bad day, they are always like that. I went there because I had to... :-S

 

 

[Trik'Stari]

I'm gonna go ahead and solve this for everyone, regardless of company.

 

NEVER tip your delivery drivers via your credit card. Not only because of things like this, but because the IRS taxes them on it, despite it being very obviously a "charitable donation" rather than "Guaranteed income". Obviously this only applies in the US. It's a scummy fucking move by the IRS, and quite honestly, they can get fucked.

 

Seriously, never tip your drivers on a credit card. Give them cash. If they're smart, they're only reporting single digit amounts of tips to management. That's what we did. Any demand for accurate cash reporting was basically met with "we'll all walk out right now and you won't have a staff tomorrow".

 

This works especially well with Domino's because they run in such a way that Drivers do 65% or more of the actual work. They answer the phones, top the pizzas, run the ovens, clean the store at the end of the night. The managers don't do nothing, but the drivers bust their fucking asses to make those stores run.

 

Oh and the "delivery fee"? That doesn't go to your driver. It allegedly goes to paying for the truck that delivers ingredients and supplies to the store from Domino's distribution centers. I don't know if this is true or if the owner was just fucking pocketing the money. I know I only got $00.75 per delivery, and was making more than a dollar per hour under minimum wage.

 

Tip. In. Cash. ALWAYS. Fuck the IRS, and fuck franchise owners.

[Tristerin]

Agree with @Trik'Stari - don't involve the Government at all.  If not you are just taking a portion of that tip and giving it straight to your Government who will GLADLY mis-spend it for all of us instead.

[poochyena]

The title is absolutely FALSE

Doordash promises you a minimum wage and give extra money if you don't make enough in tips

Doordash does not take any money from tips

[Drak3]

2 minutes ago, poochyena said:

Doordash does not take any money from tips

Yes, they do. Doordash forces a minimum tip and they take a cut of any tips through card.

[Nowak]

1 hour ago, Drak3 said:

Tipped wage law requires employers to compensate if wage + tips is less than federalno tipped minimum wage. 

Also state minimum wage, because a number of states have minimum wages higher than federal minimum.

[poochyena]

15 minutes ago, Drak3 said:

they take a cut of any tips through card.

do they? Or is that the credit card company?

[Drak3]

Just now, poochyena said:

do they? Or is that the credit card company?

It’s Doordash.

[poochyena]

Just now, Drak3 said:

It’s Doordash.

source?

[Sauron]

2 hours ago, suicidalfranco said:

tfw you are in italy and never heard of tips

ikr, imagine being paid by your employer

[MMKing]

''Say, for example, that you’re a DoorDash driver who is guaranteed a minimum of $10 to deliver a burrito to a customer’s house. The customer tips $5 for the burrito. Instead of receiving $15 from DoorDash, you could receive as little as $11 total. That’s because DoorDash only guarantees $1 out of its own pocket for each order. Anything extra, the company makes up for in tips.''

 

I mean, i get the issue. Customer tips anything less than 10, and they might as well not tip at all being the issue here.

 

Doordash promise 10USD

You tip 7USD, Doordash supplements 3 USD

You tip 3 USD, Doordash supplements 7 USD

You top 0, Doordash 10 etc etc.

 

For the tip to do anything, the customer would have to tip 10 dollars. Since there is a base 1 dollar, no matter what. After that, each dollar added in tip will add 1 dollar to the delivery wage.

 

What i don't get is why people bother fighting this? Currently, the delivery driver is guaranteed, no matter what. 10 dollars per delivery. It makes no difference how much tip he or she receives, which i thought was the entire idea being fought in the industry at large. That tips should not be mandatory for the workers to earn what some refer to as a ''living wage''.

 

What is really going on is that they want to make 10USD per delivery, then receive the tips on top of that. Which is not going to happen. You can have your 10USD minimum per delivery, or you can keep all of the tips, not both. You are not going to retain the 10 dollar per delivery, and keep the tip. You can keep 100% of the tip, but then you won't be guaranteed the 10 dollars.

 

And if the delivery driver wants to make that choice between say maybe 3 dollars + tip, or 10 dollars minimum + any tip exceeding 9 dollars.

[Sauron]

22 minutes ago, poochyena said:

The title is absolutely FALSE

Doordash promises you a minimum wage and give extra money if you don't make enough in tips

Doordash does not take any money from tips

What's the difference?

[Drak3]

2 minutes ago, poochyena said:

source?

Scroll up.

[poochyena]

1 minute ago, Sauron said:

What's the difference?

What do you mean whats the difference? The claim they are taking money from you, but they aren't. The tip given to you is kept by you.

[Sauron]

Just now, poochyena said:

What do you mean whats the difference? The claim they are taking money from you, but they aren't. The tip given to you is kept by you.

Yes the are, if you get a 9$ tip you get the same money as you would with a 0$ tip and doordash spared 9$. So yes, they ARE taking the tip money and then using it to pay your base salary, which should be separate. Not that a tip based system has any right to exist anyway but this is somehow even worse.

[poochyena]

2 minutes ago, Sauron said:

Yes the are, if you get a 9$ tip you get the same money as you would with a 0$ tip and doordash spared 9$.

Pretend this was all done with cash so it is easier to visualize for you. If the customer gives you a one $5 bill and four $1 bills, would those five bills ever be taken by doordash? no.
Theft is when something is stolen. Nothing is stolen. Doordash is not "pocketing" that money.

[ARikozuM]

Just now, poochyena said:

Pretend this was all done with cash so it is easier to visualize for you. If the customer gives you a one $5 bill and four $1 bills, would those five bills ever be taken by doordash? no.
Theft is when something is stolen. Nothing is stolen. Doordash is not "pocketing" that money.

This isn't about cash. This is about tipping on CC. 

[poochyena]

Just now, ARikozuM said:

This isn't about cash. This is about tipping on CC. 

Its the same thing happening whether with cash or CC. As I said
"Pretend this was all done with cash so it is easier to visualize"

[MMKing]

8 minutes ago, Sauron said:

Yes the are, if you get a 9$ tip you get the same money as you would with a 0$ tip and doordash spared 9$. So yes, they ARE taking the tip money and then using it to pay your base salary, which should be separate. Not that a tip based system has any right to exist anyway but this is somehow even worse.

Would you prefer it

 

option 1

Doordash gives 1 dollar, 7 dollars tip = 8 dollar

 

Option 2

Doordash gives 10 dollars, 7 dollars tip = 10 dollars

 

option 3, the fantasy option

Doordash gives 10 dollars, 7 dollars tip = 17 dollars

 

Everyone should just stop tipping entirely. So that Doordash will have to pay the full 10 dollar on every delivery. Then we can get what everyone wanted in the first place, a company which pays 100% of the salary with 0% dependence on tips.