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Instacart and DoorDash’s Tip Policies Are Delivering Outrage

nytimes.com

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

#41

Post by dragonwriter »

crushcrashcrush wrote: post #11
jonknee wrote: 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?

We don't have corporatism (corporate crony capitalism, which is a bit redundant, but not corporatism which is a completely different thing; the corpora referred to in corporatism is the body formed by the whole of society, not each individual firm as a corporation.)

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

#42

Post by airstrike »

resters wrote: post #29
airstrike wrote: post #24

Earlier quoted context omitted.

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.

An MBA would point out that in the this isn't a sustainable strategy, regardless of any concept of fairness.

Backlash from customers and workers is virtually guaranteed to hurt long-term profits.

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

#43

Post by save_ferris »

crushcrashcrush wrote: post #11
jonknee wrote: 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?

Hard to say exactly without being privy to their conversations, but the aggressive growth pressure that young companies with VC funding face almost always factors in somehow.

It's hard to truly expect companies to make the correct ethical decision in this scenario when the survival of founders is dependent on raising more and more money. The "grow now, profit later" model truly puts pressure on execs to take whatever they can. And in this case, they clearly thought either nobody would notice or care.

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

#44

Post by irrational »

itronitron wrote: post #36
giancarlostoro wrote: post #3

Earlier quoted context omitted.

> Or maybe give the driver cash? "Gross. Who carries cash anymore?" Future headline: Millenials are killing physical cash. Jokes aside (as a millennial) this is not something I usually have readily available. I try to keep all my transactions digital but I may take money out just for tipping purposes.

In that case I recommend that you go to your bank and make a cash withdrawal in the form of $2 bills. That way you can be cool when handing out cash tips.

I do all my banking online. My bank doesn't have any local branches. Seriously, who has cash anymore?

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

#45

Post by duxup »

callinyouin wrote: post #35
duxup wrote: 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…

I guess it "fits" with what they're already doing in the sense that it's mitigating risk for the company, but paying the driver pennies when they get a decent tip is on another level entirely. Nobody would ever expect that their tip would go to the company and not the driver, that's just not what a tip is for. A worker not getting paid when sales are slow or not being covered when there's an injury because they're co…

>I guess my point is that this is outside of what people generally understand about these types of jobs.

I think it is shocking and would be to most folks.

But as for what they understand, I suspect many (not all) of the folks work these jobs ... are just bad at math and don't really realize what they're getting paid / the risks.

In that sense for those folks the entire job is outside what they understand.

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

#47

Post by excitom »

giancarlostoro wrote: post #3
jonknee wrote: post #2

The kick of the plot here is to not tip on Instacart as you're just handing money to VCs. Or maybe give the driver cash?

> Or maybe give the driver cash? "Gross. Who carries cash anymore?" Future headline: Millenials are killing physical cash. Jokes aside (as a millennial) this is not something I usually have readily available. I try to keep all my transactions digital but I may take money out just for tipping purposes.

This is exactly why I keep some small bills in my wallet. No need for the "man" to share the transaction between me and the person who provided me with good service.

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

#48

Post by darkpuma »

mhb wrote: post #9
chaboud wrote: 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.

Okay, but what do the ex-Instacart workers have to say?

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

#49

Post by dragonwriter »

jonknee wrote: post #2

The kick of the plot here is to not tip on Instacart as you're just handing money to VCs. Or maybe give the driver cash?

Why would you tip on any service where you are already literally paying for the service of delivery?

It's like tipping has become completely divorced from any purpose.

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

#50

Post by smichel17 »

giancarlostoro wrote: post #3
jonknee wrote: post #2

The kick of the plot here is to not tip on Instacart as you're just handing money to VCs. Or maybe give the driver cash?

> Or maybe give the driver cash? "Gross. Who carries cash anymore?" Future headline: Millenials are killing physical cash. Jokes aside (as a millennial) this is not something I usually have readily available. I try to keep all my transactions digital but I may take money out just for tipping purposes.

As another millennial, I carry cash and pay with it whenever possible, though I think I'm in the minority on the latter point (but not the former!).
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