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DoorDash Criticized for Continuing To Pocket Tips

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The delivery service DoorDash recently came under fire for appearing to confiscate its delivery workers tips. Despite the company’s assurances it would change, that still seems to be the case. On Dasher In July, DoorDash’s Chief Executive Officer Tony Xu responded to criticism of the company’s payment policy. The company’s delivery people, known as Dashers, are guaranteed a certain minimum per order. Until 2017, DoorDash paid its delivery people a flat $6 fee per order, plus tips from the customer. Then algorithms got involved. The San Francisco-based company adopted a calculation where the guaranteed minimum was calculated based on factors such as “restaurant distance, customer distance, and delivery times.” This change was seen by critics and a lot of Twitter users as a way to pocket tips and pay delivery people less. Deliverance The food delivery game is a competitive one, and DoorDash, eager to stop the consumer backlash and bad press, promised changes to its model. That change has apparently not taken place, as Business Insider reported that as recently as Monday, some workers were still not getting their tips. But in a blog post yesterday, Xu promised they were going to let Dashers keep all of their tips, starting next month. For real this time. Gig Is Up? As stories about how hard it can be for delivery people, drivers and other workers in the gig economy continue to proliferate, consumers are increasingly calling out what they see as unfair treatment of workers. (Just ask Xu.) Some business leaders are starting to pay attention to the unbalanced economy, such as Allstate Chief Corporate Executive Tom Wilson, who recently urged companies to begin focusing on creating more high-paying, stable jobs. -Michael Tedder Photo by Adobe