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What DoorDash pays, after expenses, and what’s happening with tips

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Re: What DoorDash pays, after expenses, and what’s happening with tips

#11
post #6

An interesting nugget in this otherwise okay article is the suggestion that DoorDash is still indirectly keeping customer tips, because orders with low/zero tips are more likely to get rejected which means that they will have to keep increasing the base price till a driver accepts it. As a customer I suppose I should start adding tips only after the order is finished rather than when I place the order.

Why would you tip before getting service anyways? that never made sense to me

Re: What DoorDash pays, after expenses, and what’s happening with tips

#12
post #11
post #6

An interesting nugget in this otherwise okay article is the suggestion that DoorDash is still indirectly keeping customer tips, because orders with low/zero tips are more likely to get rejected which means that they will have to keep increasing the base price till a driver accepts it. As a customer I suppose I should start adding tips only after the order is finished rather than when I place the order.

Why would you tip before getting service anyways? that never made sense to me

Drivers would refuse to accept a low priced order, or one without tip, presumably.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#13
Why do they do these tips?! Why not charge a total and pay all expenses and people from that? I don't understand why the complicated setup and all the fuss that comes from it. Seems like they create problems for themselves out of nothing.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#14
post #12
post #11

Earlier quoted context omitted.

Why would you tip before getting service anyways? that never made sense to me

Drivers would refuse to accept a low priced order, or one without tip, presumably.

Then it isn’t a tip. It’s a fee.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#15
post #11
post #6

An interesting nugget in this otherwise okay article is the suggestion that DoorDash is still indirectly keeping customer tips, because orders with low/zero tips are more likely to get rejected which means that they will have to keep increasing the base price till a driver accepts it. As a customer I suppose I should start adding tips only after the order is finished rather than when I place the order.

Why would you tip before getting service anyways? that never made sense to me

It's a result of how paying works in this economy, essentially. You scan your card at the register when ordering (or in the app, you plug it all in there) and complete your transaction then. If you're not carrying cash (I tend not to anymore) there's not really any way for you to tip after you've actually had your meal if you already did all the payment up front.

Of course you can tip after in some of these apps, but they don't consistently surface that to you. I know offhand how to add a tip hours after a Lyft ride (i've done it before, there's a little link buried in the receipt) but honestly don't know how I would do that for a doordash or grubhub order, I'm not even sure I can.

I try to tip delivery drivers with cash now that I know the services used to steal tips, I can't trust them not to do it again - but if I don't have any cash on hand I'm probably just going to plug 15-25% into the app when placing the order and if I get unbelievably bad service I can try to claw it back by complaining to support.

FWIW it seems like these services are pretty generous with refunds/discounts when you have a bad experience if you contact them. I've only had to do it once, but my sister has gotten $5-15 refunds from services like grubhub or doordash multiple times when a delivery goes haywire. I assume they build that into their model as an expected expense on N% of deliveries.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#16

I drove for DoorDash for about a month. What killed me was the wait between deliveries. I think it was like 45 minutes on average and when I did get a delivery it was like a tiny $7 delivery. There would be 2 hour stretches of times pretty often. But then once in awhile I'd get a string of maybe 3 or 4 runs that paid like $12. over 2 or 3 hours.It was too inconsistent. Had no idea if I ever got tips, from my understa…

>> There's just too many drivers I think. That's fascinating. Seems like the free market really would drive the wage to 0. DoorDash's "innovation" is the black box to obscure the fact. If they paid more fairly like their competitors, they wouldn't be growing as fast. Seems kindof like a cyberpunk future, with corporations negating regulations through advanced technology. Also in those cyberpunk futures, society break…

> DoorDash's "innovation" is the black box to obscure the fact.

Classic information asymmetry exploitation, only in this case, they're the ones that created the asymmetry.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#17

I drove for DoorDash for about a month. What killed me was the wait between deliveries. I think it was like 45 minutes on average and when I did get a delivery it was like a tiny $7 delivery. There would be 2 hour stretches of times pretty often. But then once in awhile I'd get a string of maybe 3 or 4 runs that paid like $12. over 2 or 3 hours.It was too inconsistent. Had no idea if I ever got tips, from my understa…

There is room for Uber-app-in-cloud-emulator multiplexers. As single app endpoint for a variety of delivery apps so you will have more options to choose from when business is slow.

Re: What DoorDash pays, after expenses, and what’s happening with tips

#18
post #12

Earlier quoted context omitted.

Drivers would refuse to accept a low priced order, or one without tip, presumably.

Then it isn’t a tip. It’s a fee.

Incidentally tips are like this for many regular non-gig-economy food service workers too - many areas allow an employer to pay less than the minimum wage as long as the total pay (including tips) meets the minimum. So a person who gets $0 in tips gets (say) 7.25/hr from their boss, but if they get 5/hr in tips they might just get 2.25/hr from the boss and not come out ahead at all - your tips are just a fee being handed indirectly to the boss. Of course, if they get more than 7.25/hr in tips they're coming out ahead, and there's still a minimum pay threshold so they're always getting something from the boss.

According to a quick search federal standards in the US requires at least $2.13 per hour be paid to employees who receive at least $30/mo in tips, with the total needing to hit 7.25. It's probably higher in some areas. This is part of why wage theft is such a pervasive problem in the US because it's very easy to get away with it in scenarios where you're supposed to be compensating for variable tip income, etc - sometimes the boss just doesn't pay what they're supposed to, oops!

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