DoorDash, the food delivery company, has claimed that it is reevaluating how it pays employees after outcry over the firm’s rule of utilizing tips from customer to subsidize base pay.
In a chain of tweets, Tony Xu (DoorDash CEO) claimed that it had become “obvious from latest feedback” that the firm’s rules were not well-liked. Below the present system by DoorDash, tips left by users through the firm’s app are employed to make up the minimum salary that DoorDash commits its employees. Many users claimed that they felt tricked by the policy and had predicted that tips went squarely to employees.
Xu claimed that in the near future the firm will alter this policy. “The new model will make sure that employee’s earnings will increase by the precise amount a user tips on each order,” claimed Xu. “We will have detailed info in the days to come.”
The careful wording of the CEO in this tweet recommends that whatever new system the firm launches will have to be examined closely. Committing that “earnings will increase by the precise amount a user tips” seems good, but it is not quite the same as just saying “we will pay drivers a minimum charge and any tips from users will go on top of that.”
The problem of DoorDash’s rules came to public attention after a sequence of stories posted by media.
On a related note, DoorDash earlier claimed that it aims to be a more ethical food delivery firm. It claimed that it has already started concentrating on sustainability and had offered voter registration kits together with the standard faire of meals, snacks, and beer. But the firm has attracted condemnation for its tipping policy, in which delivery employees do not always get the tips that users offer them. The firm earlier claimed that it is updating its payment structure in a meaner it claims will be more transparent for its delivery employees.