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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

#51
> The company repeatedly defended this wildly unpopular tip-swiping pay model over several waves of public controversy

The real controversy is why, in 2020 and only in the USA, do we have a business model that offloads the employee compensation responsibility onto customers?

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

#52
post #34

Earlier quoted context omitted.

>> 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…

It's fascinating that the pay is dismal and yet there are too many drivers. I'm guessing partly because few understand their expenses and net pay. And some really do value the ability to work whenever.

And people are desperate - as benmanns put it, it's a "line of credit out against depreciation on your vehicle. Sure you lost money, but you get cash today."

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

#53
post #35

Earlier quoted context omitted.

You could ask the same about white collar workers voluntarily spending 2hrs a day commuting to get to and from work everyday

Two hours of reading, snoozing, thinking, hobbies, what's wrong with that? I used to quite appreciate the time and space of my long commute.

This is classic Stockholm syndrome with commutes that I see all too often.

What's wrong with the commute? The fact that, if you didn't have the commute, you could do all those same things and also anything else you can think of. The opportunity cost is enormous.

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

#54
The other thing is that these services aren't even a good deal for the customers. I can order chinese from a local place by calling them and pay 30 instead of 20 w/ delivery, but with Doordash it ends up being almost double not including a tip. I'm not sure where the customers are coming from outside of drunks. It's not a good value.

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

#55
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

Because in the US, tips are not for service quality, they're to boost your server's pay up somewhat closer to a living wage. Obviously they should be banned along with the practice of adding taxes and fees on top of listed prices, but the consumer protection lobby just doesn't have that sort of power. They're lucky to slow down the removal of customer protections these days.

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

#56
post #53

Earlier quoted context omitted.

Two hours of reading, snoozing, thinking, hobbies, what's wrong with that? I used to quite appreciate the time and space of my long commute.

This is classic Stockholm syndrome with commutes that I see all too often. What's wrong with the commute? The fact that, if you didn't have the commute, you could do all those same things and also anything else you can think of. The opportunity cost is enormous.

> if you didn't have the commute, you could do all those same things and also anything else you can think of

I don't think that's true.

In my case, I'd pay the opportunity cost of not being able to both do the PhD with the advisor I wanted and also have my daughter live where I wanted.

If I didn't take the commute, I could do my hobbies, but not simultaneously both do the PhD I wanted and have my daughter live where I wanted.

Only the commute lets me satisfy everything I want.

See?

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

#58
post #7

I would guess that DoorDash is very negative for restaurants and restaurant waitstaff, also.

Increased revenue is usually a problem you (a business) want to have. If that revenue isn't trickling down to the workers, well, that is pretty much America in a nutshell.

Becoming a commodity supplier to an aggregator is a losing proposition. If the value is in delivering the food, restaurants slowly stop being able to differentiate based on branding, experience, presentation, location, or offering and instead compete mostly on price and speed. It's a shit position to be in.

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

#59
post #37
post #28

Earlier quoted context omitted.

A major negative consequence for restaurant workers as a result of food delivery apps is that they are busier than ever because they are now fulfilling orders all day from these apps in addition to orders from people that walk in. I went to Popeyes last week and there’s just a stream of receipts from online orders constantly printing, and they have to fulfill all those while dealing with everyone that comes in. And o…

Aren’t minimum wage raises responsible for this? If restaurants are forced to pay $15 an hour minimum, how can it be profitable without them being more productive?

It may surprise you to learn that most businesses employ minimal staffing no matter what the min. wage is.

I worked for $5.25 an hour as a teenager, and that doesn't mean they just employed more people and we all took it easy. I would challenge the assertion that a business would not optimize worker output just because they are cheaper (and cheaper is relative, I'm sure even when it was lower the business owners still claimed it was too high).

Lastly, there are many ways a business divides its costs and there are many ways to be successful, even if sharing more profits with workers. Just ask Costco.

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

#60

This is why when I do order from Doordash, I only tip in cash and make sure to write it in the comments. Still the best online delivery by me even if they are a shit company. Hate Grubhub more.

I do also. As I hand them the cash I say very deliberately, "Thank you. This is for you, not them".

I've been doing it for ubers lately as well.

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