(However, if a worker rejects too many jobs too frequently, they may receive fewer job offers as a result.) Further, when a job is offered to a worker, the amount of pay from DoorDash and customer tip are combined into a single “guaranteed amount,” with no breakdown available up-front as to how much is pay and how much is tip.
They are simply offered a given job which pays a given amount, which they can accept or reject. Pay for each job is still set through a black-box algorithm which the company claims accounts for a wide range of various factors however, workers have no access to the details of how those factors are weighted. Reportedly, tips no longer directly factor into pay rates. The company’s updated pay model, analyzed in this report, includes minimum pay of just $2 per delivery job. The company repeatedly defended this wildly unpopular tip-swiping pay model over several waves of public controversy, finally agreeing to change the policy in July, and only implementing the change in September. Under the pay model the company employed from 2017 until the fall of 2019, each dollar of customer tip did not raise workers’ earnings by a dollar - it simply meant the company paid the worker one dollar less. The company is reportedly preparing for an IPO and has been valued at a remarkable $12.6 billion.ĭoorDash has also been the focus of a sustained controversy over a pay model which misappropriated customer tips intended for workers. Food delivery app DoorDash has grown rapidly into the national industry leader, serving all 50 states and outpacing GrubHub, Uber Eats, Postmates, and other players with an estimated 35% marketshare in a rapidly-expanding segment.