Every one of these services pays below minimum wage to their drivers and will use every trick in the book to make sure that any cost saving measures goes downstream to lower the amount paid to the drivers.
A DoorDash courier makes like $5/delivery. Most couriers work nights and get ~5 deliveries in a night. That’s $25/night or $750/month before gas, car maintenance, increased car insurance payments due to their courier job, etc.
For people who take this on as a second job, it’s barely worth it. For people who do this for a primary job, it’s a lot of work to barely keep your head above water.
As for the issue of tipping your food courier, I see it like this: you tip the pizza delivery guy, why not the DoorDash guy?
UPS does it in a 1 day timeframe and not with food which could get cold or something and they deliver to a lot more houses at once.
While DoorDash targets 1 customers house and lets 1 biker drive there. If you want to pay for him to have a fair wage then you probably wouldn't order from DoorDash anymore because it's too expensive
At the moment tips are a hidden cost that customers don't see or think about when they order.
It effectively allows Doordash (and others) to present their service as being cheaper than it really is.
If presenting the full cost upfront means people stop using the service then it simply means that there is actually no viable market.
There are plenty of food delivery companies (eg Deliveroo, Wolt, FoodPanda) in countries without a tipping culture. Go to any European capital and chances are you'll see loads of brightly-coloured cube-shaped backpacks cycling around — so the companies seem to be doing OK.
According to figures from end of last year Deliveroo lost £185m while making £277m in sale... Any 'normal' business would have collapsed even before getting there.
These companies are like Uber and Lyft: The business case is very shaky and they are facing employment law pressures at the same time. So we'll see...
It's been a very long time since I've waited tables, but a company keeping tips in this way is (or at least was) in serious violation of US labor laws.
So perhaps they are calculating one or more of:
* Nobody will follow up and figure the claim that the policy will be changed was a lie
* If somebody does, people won't care, or won't care enough to stop using the app
It shouldn't take a month to switch your tipping model to work the way it does for the rest of the industry.
It is all about pushing risk onto "contractors" and customers.
What, you can't be bothered? It's a faff?
Someone's job is to cart shit around the city, for you. To literally be your bitch.
It’s a job, they get paid. I ordered something that cost $X including delivery, I expect that to be the final total, not $X + “step up”.
If they’re not getting paid enough, enforce a higher minimum wage (it is also a US-specific issue; tipping isn’t the norm in a lot of other developed countries and the world doesn’t end).
As you say, the actual answer here is tightening minimum wage laws so that they're actually effective, but given the state of DC these days I'm not holding out hope.
So I tip.
That being said, I think asking for a tip before a service has been rendered is really weird and really screws up whatever sense there was in tipping.
I find it increasingly hard to tip for things like DoorDash because I'm already charged directly for the service separately from the product, so that signals to me that the person is already getting paid. I don't tip my package/mail delivery person, so why should I tip my food delivery person?
This is an action you can actually take to improve a person's life right now (if you use these services and would have tipped anyway).
they're bringing a bespoke something to my door, i'm in my pajamas when I collect it, and I'm consuming it inside of 10 minutes.
Checks are another anachronism I don't own or use.