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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

#281

Post by hocuspocus »

mjevans wrote: post #274
hocuspocus wrote: post #250

Earlier quoted context omitted.

> relocation assistants Does this mean something completely different in the US compared to the rest of the world? How is anyone in this business being underpaid?!

They're talking about the labor for moving things, and yeah, it's a "service" job so it too is owned by someone else who takes most of the profits.

Got it, that's a funny way to call movers.

Relocation agents (employed or freelancing) can easily bill $1000/day over here so I was a bit confused.

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

#283

Post by hurricanetc »

franga2000 wrote: post #199
2rsf wrote: post #192

Earlier quoted context omitted.

Yes we can, that's how it works in Sweden and AFAIK in many other European countries. Tips are not expected, and are meant only for extraordinary service. The base pay is decent and so are the benefits like vacation, pension etc.

Is there any other country other than the US where paying service workers below minimum wage is legal or acceptable? I've been around a fair bit of Europe and surroundings and I've never encountered the US system.

Misconception. Service workers must be paid the higher of state, city, or federal minimum wage. If wages plus tips are not equal to or greater than the minimum wage then the minimum wage must be paid.

If everyone suddenly stopped tipping then service workers would default to minimum wage. For anyone with a different experience your employer was breaking the law.

But what I think you’ll find is that it is the service workers themselves who prefer working for tips.

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

#284

Post by Grue3 »

gvjddbnvdrbv wrote: post #179
savanaly wrote: post #176

Earlier quoted context omitted.

None of all of what you wrote addresses how those folks between a rock and a hard place will be better off not having the option to work for a given service at all.

Because people still want food cooked and delivered and to use taxis. If the non financially viable companies did not exist then financially viable ones would.

Just because a service exists doesn't mean the same service can exist and be financially viable for every employee. There are many businesses that are inherently unprofitable. It can be argued that such businesses should be subsidized because their existence is beneficial to society (e.g. Ubers in the neighborhoods that taxis wouldn't serve).

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

#285

Post by thenewnewguy »

Thorrez wrote: post #194
perfectstorm wrote: post #102

Earlier quoted context omitted.

I don't think that's apples to apples comparison. As a pizza delivery driver, your pizza shop is your base and you only go out when there's an order that needs to be delivered. My friend used to work at Pizza Hut and he was getting reimbursed for gas (per mile but it was slightly more than his gas mileage so i suppose it covers for wear and tear?). As far as i know, you're not getting reimbursed for delivering DoorDa…

I don't think DoorDash has to be less efficient for traveling than pizza delivery. With pizza delivery, you have to drive to the person's house then back. So you cover the same road twice for a single delivery. But with DoorDash, theoretically, then could see there's an order from A to B, find a driver near A, have the driver deliver to B, then match that driver up with an order from near B to near A. So the driver c…

In an ideal world, maybe - but most delivery drivers employed by the restaurant (like pizza delivery drivers) take multiple orders at a time to deliver. You're going to have to get very lucky to beat this on average with DoorDash or similar services.

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

#286

Post by frobozz »

hurricanetc wrote: post #283
franga2000 wrote: post #199

Earlier quoted context omitted.

Is there any other country other than the US where paying service workers below minimum wage is legal or acceptable? I've been around a fair bit of Europe and surroundings and I've never encountered the US system.

Misconception. Service workers must be paid the higher of state, city, or federal minimum wage. If wages plus tips are not equal to or greater than the minimum wage then the minimum wage must be paid. If everyone suddenly stopped tipping then service workers would default to minimum wage. For anyone with a different experience your employer was breaking the law. But what I think you’ll find is that it is the service…

> it is the service workers themselves who prefer working for tips.

I'm sure they'd prefer a sensible wage + tips, over a sub-minimum wage supplemented by tips.

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

#287

Post by tallanvor »

devmunchies wrote: post #127
bobloblaw45 wrote: post #2

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. interesting, I'm desperate for more drivers. I run a side business that delivers cookies, drivers do just under 30 deliveries a day (about 3-4 every hour) and make minimum wage plus 100% of tips are split at the end of pay period. it ends up being about $3/delivery in tips, which is an extra $9/hr for a total of $21/hr (minimum wage is $12). A driver could theoretically make ov…

"plus 100% of tips are split at the end of pay period"

Split with who?

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

#288

Post by hurricanetc »

This is supply and demand in action. From a strictly capitalist perspective DoorDash should continue to drop wages until people stop working for them. The equilibrium is obviously lower than their current payouts or people wouldn’t continue driving for them.

I don’t think it is possible to make money in the gig economy driving a vehicle. These articles talk about direct car expenses but never talk about indirect. If you factor in vehicle depreciation I am convinced that the net wage for driving is below $0.

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