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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

#231

Post by amscanne »

smt88 wrote: post #123
chii wrote: post #115

Earlier quoted context omitted.

> you basically just "borrowed" money from your vehicle. so wouldn't it then make more sense to just sell the vehicle for $10003, then place that money in an interest earning asset like a bond, rather than "borrow" from the value of the vehicle?

Most Americans can't manage daily necessities (groceries, childcare, doctor's visits, etc.) without a car. Then maybe you ask why they don't have a cheaper car. Generally, a cheaper car costs far more to maintain. The total annual cost of ownership of a 2-year-old Camry is far lower than a 10-year-old Camry. But to get that lower cost, you have to temporarily convert more of your money into that car asset. End result…

> Generally, a cheaper car costs far more to maintain. The total annual cost of ownership of a 2-year-old Camry is far lower than a 10-year-old Camry. But to get that lower cost, you have to temporarily convert more of your money into that car asset.

That’s a poor example, since a Camry is notoriously reliable and needs minimal maintenance. And ten years really isn’t that old. The depreciation on the two year old car would outweigh the maintenance on the ten year old car. I believe that 5-10 years old is the sweet spot for TCO.

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

#232

Post by jamisteven »

These "gig" and "service" companies are simply re-defining minimum wage and taking advantage of a segment of the populace that cant get minimum wage jobs for one reason or another. But yea, dont want 1.45 an hour then find another job. Dont want to be broke AF then dont have 3 kids. How can anyone take the examples in this article even remotely serious.

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

#233

Post by ginknocab »

pgrote wrote: post #133
koolba wrote: post #63

Earlier quoted context omitted.

Do the delivery drivers see the message prior to accepting the gig? If so, can you add the actual price of the delivery as charged to you by DoorDash to the message so they can know how much they can game DoorDash?

That is my question, too. After Doordash said they were giving 100% of the tips to the drivers, I started tipping high at the order thinking that the drivers were getting X for the delivery and then 100% of what I tipped. Based on this sample it appears I have been hoodwinked by Doordash and it irritates me. If I tip only cash, does my order sit and sit and sit?

It may sit for a while. We can't see notes before accepting it, unless you're willing to gamble on penalizing yourself with their 'Completion Rating' by accepting to read notes then 'reassigning' if there's no guarantee of higher pay. The 'Completion Rating' affects your ability to either schedule at 3pm, 6 days in advance or be a 'Top Dasher' that allows you to go on the clock any time you want. In smaller markets like mine, if I can't schedule at 3pm or be 'Top Dasher', I'm shit out of luck.

I personally don't accept any offer below about $8 total. On average I see Doordash pay $3 'Base Pay.' I'm just not willing to gamble because there are a ton of people who are more than happy to not tip either out of ignorance or willfully being a cheap ass.

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

#234

Post by ace32229 »

sschueller wrote: post #207
dmode wrote: post #160

Why can’t we have normal businesses where you employ your workers and charge your customers the real cost of the transaction ? If that is not viable, don’t start the business to begin with. Let’s just go back to first principles, can we ?

We can, stop using and supporting these predatory companies. Never use Uber, Lyft, Doordash, Uber Eats, AirBnB etc. No exception irregardless how easy or cheap it may be. It's a small sacrifice but can and will make a difference. Using these services to me is like asking a waiter to pay for part of my meal. When it comes around to paying the bill are you able to face someone and ask them to pay for part of what they…

Out of curiosity, what made you put AirBnB in that list?

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

#235

Post by PanosJee »

arcticbull wrote: post #163
dmode wrote: post #160

Why can’t we have normal businesses where you employ your workers and charge your customers the real cost of the transaction ? If that is not viable, don’t start the business to begin with. Let’s just go back to first principles, can we ?

I mean the idea is that you operate at a loss until the economies of scale catch up and you begin being profitable. Starting with the low price let’s you maximize growth, and you make it up on the back end. That’s not a problematic system. What is problematic is if there are no economies of scale.

Economy of scale applies to production think chips & screens. What economy of scale can DoorDash achieve? Persuade everyone to be paid below fair wage? Push the margin of restaurants down?

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

#236

Post by PanosJee »

sombremesa wrote: post #170
dmode wrote: post #160

Why can’t we have normal businesses where you employ your workers and charge your customers the real cost of the transaction ? If that is not viable, don’t start the business to begin with. Let’s just go back to first principles, can we ?

Because these companies are still finding enough labor after lowering what they pay out drastically. It's the market in action. You're right that as a society we have a duty to step in with policy here, as we do with minimum wage, but this isn't a violation of "first principles".

That's when I thought the economy was doing really great and unemployment was all time low. But wait people want to work for below minimum wage? Something is broken

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

#237

Post by PanosJee »

marcell wrote: post #30

> “These orders don’t pay for our expenses or our time. We actually lose money when we take those orders. If I pick up an order that is 10 miles away and deliver it 6 miles I’m traveling 16 miles for a $3 order — so I have lost money. I’m in the negative when I account for gas, wear and tear, and other expenses. Not to mention my time.” This begs an obvious question: why are people choosing to do this if it pays $0/h…

People are not automata. Usually we are not rational

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

#238

Post by mschuster91 »

sombremesa wrote: post #170
dmode wrote: post #160

Why can’t we have normal businesses where you employ your workers and charge your customers the real cost of the transaction ? If that is not viable, don’t start the business to begin with. Let’s just go back to first principles, can we ?

Because these companies are still finding enough labor after lowering what they pay out drastically. It's the market in action. You're right that as a society we have a duty to step in with policy here, as we do with minimum wage, but this isn't a violation of "first principles".

It is a violation of fair market principles, at least in spirit. While legal, the "gig economy" is based on abusing contractor laws and regulations (e.g. lack of employee protections, sick time, ...) - which means that companies that follow the letter and the spirit by properly hiring and paying their workers are priced out of business.

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

#239

Post by mschuetz »

sschueller wrote: post #207
dmode wrote: post #160

Why can’t we have normal businesses where you employ your workers and charge your customers the real cost of the transaction ? If that is not viable, don’t start the business to begin with. Let’s just go back to first principles, can we ?

We can, stop using and supporting these predatory companies. Never use Uber, Lyft, Doordash, Uber Eats, AirBnB etc. No exception irregardless how easy or cheap it may be. It's a small sacrifice but can and will make a difference. Using these services to me is like asking a waiter to pay for part of my meal. When it comes around to paying the bill are you able to face someone and ask them to pay for part of what they…

That's not going to happen, the majority will always be drawn towards the cheaper choices. Work conditions and minimum pay are things that need to be regulated, because people won't chose their burger place based on how much their staff earns.

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

#240

Post by kohtatsu »

baddox wrote: post #223
TAForObvReasons wrote: post #211

Earlier quoted context omitted.

I thought the plan was Dumping https://en.wikipedia.org/wiki/Dumping_(pricing_policy) Step 1) Use VC money to subsidize the price so that the market price is below cost Step 2) Continue to use VC money to subsidize while competitors, who don't have the same cash, lose customers and eventually contract or die off Step 3) Once you are the only real player, use your dominant position to raise prices

Does the strategy even go that far? I thought it was more like 1) VCs invest money in companies hoping that some of them grow very fast 2) some of them do grow fast, so more VCs invest more money 3) the really really big companies IPO and the VCs make a lot of money All of this can happen way before your step 3.

Both of you are right from my perspective. IPOs haven't had much to do with current profit.
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