DoorDash changing pay model to give drivers 100% of tips

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July 24 (UPI) — Food deliverer DoorDash has responded to controversy over the fairness of its drivers’ pay by changing its policy to give them 100 percent of gratuities going forward.

DoorDash CEO Tony Xu said the company will no longer pay drivers, called “dashers,” on a flat rate.

The changes follow a New York Times report that gave a firsthand account of a DoorDash driver. Other reports showed DoorDash lowered pay to deliverers when customers tipped.

The policy was changed slightly last month, but now has been completely reversed.

“It’s clear from recent feedback that we didn’t strike the right balance,” Xu said on Twitter. “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.”

“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,” he added.

Xu said more details on the new model will be outlined soon.


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