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Instacart and DoorDash’s Tip Policies Are Delivering Outrage

nytimes.com

21–30 of 376 posts

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#21

This is a great example in my opinion of the apathy we need to combat as technologists. Why did NO ONE in any meetings when designing this "feature" or process say anything? "This is wrong/greedy/will have blowback." No one voiced concerns? Or, more specifically, if they did, no one listened? They didn't think this would leak out, with all the hatred regarding wage stagnation, income inequality, corporate greed? A ma…

My guess is this was a top down decision from the CFO/COO or head of product.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#22
post #9
post #6

I have a simple answer: I will never use Instacart or Doordash again, ever. Even if they change their policy, they are dead to me as companies, and any company that acquires them is similarly dead to me. If you're out there, upstart disruptors, know that pulling stuff like this will cost you at least one customer for life. I'm sure that there are more people like me.

Instacart workers have urged customers not to boycott the company, which would cut even further into their earnings.

Those Instacart workers can go drive for the other companies that will get my business. I'm not skipping out on grocery and food delivery. I'm voting for good behavior with my wallet.

Note: I recognize the same people driving for different services pretty regularly.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#23

This is a great example in my opinion of the apathy we need to combat as technologists. Why did NO ONE in any meetings when designing this "feature" or process say anything? "This is wrong/greedy/will have blowback." No one voiced concerns? Or, more specifically, if they did, no one listened? They didn't think this would leak out, with all the hatred regarding wage stagnation, income inequality, corporate greed? A ma…

My guess is this was a top down decision from the CFO/COO or head of product.

Betting on CFO/COO. Head of Product should be more in touch with... humans.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#24
post #8

Earlier quoted context omitted.

> Why did NO ONE in any meetings when designing this "feature" or process say anything? Who's to say someone didn't? All we know is they decided to steal tips, not that everyone thought it was a great idea.

I address that later in my comment... Is this a function of schooling? MBA programs? Corporatism?

As an MBA, I really take issue with this cynicism of MBA programs. It's not like we're cold greedy bastards. Stop generalizing. People can make great and terrible decisions, regardless of grad school degree choice.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#25
Why doesn't this problem exist when I order something from Amazon? Because there is no absurd idea that I should be tipping the UPS guy or anyone else involved in fulfilling my order.

It makes much more sense for InstaCart to simply collect star ratings and offer bonuses for the employees who are going above and beyond.

Considering how often the shopper has to call me about replacements, parking outside my building, etc., Instacart should be focusing on fixing the inventory issues and logistical issues, not trying to shame me into paying its employee an extra $5 at every turn.

Instacart charges for delivery and often marks up the prices of the items. I don't like being shaken down via a default tip when trying to check out. It's extremely irritating!

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#26
post #7

It's terrible, but really it fits what these businesses do fundamentally. They provide a service, and and push as much risk off of the copany and onto their contractors as possible. Slow sales? Contractor just doesn't get paid. Injury? Contractor's problem, he's gone, who is next? The idea that they'd dip into the pot further to ensure more money for the company isn't much different than the rest of the risk they put…

When the pendulum swings very-left (as it will, American politics follow a tick-tock partisan pattern) I believe someone (AOC?) will crack down on "contractor" companies - they're not paying payroll taxes. Not a good thing.

What's to crack down on exactly? The government still gets all its taxes. It just gets all of it from the employee (sorry, "contractor") rather than getting half each from the employee and employer.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#27
post #7

It's terrible, but really it fits what these businesses do fundamentally. They provide a service, and and push as much risk off of the copany and onto their contractors as possible. Slow sales? Contractor just doesn't get paid. Injury? Contractor's problem, he's gone, who is next? The idea that they'd dip into the pot further to ensure more money for the company isn't much different than the rest of the risk they put…

When the pendulum swings very-left (as it will, American politics follow a tick-tock partisan pattern) I believe someone (AOC?) will crack down on "contractor" companies - they're not paying payroll taxes. Not a good thing.

Contracting firms are effectively paying payroll taxes indirectly because contractors are (required to be) paying equivalent self-employment taxes, which figures into labor costs for the firms.

And, in any case, a significant part of the left opposes payroll taxes as an an additional (on top of the effects of, e.g, long-term capital gains’ favorable rates) way in which labor is structurally overtaxed compared to other income and would prefer most payroll taxes be abolished and the services they fund instead funded by getting the revenue from taxes that aren't restricted to labor.

That being said, contractor firms get out of lots of substantive workplace protections that are important to the left, which is an issue even without payroll taxes.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#28
I've always found this practice outrageous but don't understand why everyone else is only getting outraged now that Instacart and DoorDash do it...

This is pretty normal in the restaurant and food delivery industry, and should have been made illegal ages ago.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#29

Earlier quoted context omitted.

I address that later in my comment... Is this a function of schooling? MBA programs? Corporatism?

As an MBA, I really take issue with this cynicism of MBA programs. It's not like we're cold greedy bastards. Stop generalizing. People can make great and terrible decisions, regardless of grad school degree choice.

Hah. Well it's obviously a case where the consumer habit of tipping for delivery means that on a $100 order there may be $105 that the customer is willing to (or used to having to) pay. Thus leaving that $5 on the table is perhaps a stupid business decision. I should hope an MBA would point that out, so long as another MBA pointed out that the user experience may be more important than the few extra dollars.

Re: Instacart and DoorDash’s Tip Policies Are Delivering Outrage

#30
post #9
post #6

I have a simple answer: I will never use Instacart or Doordash again, ever. Even if they change their policy, they are dead to me as companies, and any company that acquires them is similarly dead to me. If you're out there, upstart disruptors, know that pulling stuff like this will cost you at least one customer for life. I'm sure that there are more people like me.

Instacart workers have urged customers not to boycott the company, which would cut even further into their earnings.

This is exactly why I don't boycott WalMart. Because as abhorrent and their policies are, the last thing I want to do is put some poor person barely scraping by out of a job.

The solution here is not to boycott these places, it's to use your power to lobby for better laws to protect the workers, which will apply evenly to all companies, including future companies that might try to take advantage of people.

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