Dear Postmates and their customers,
Your delivery drivers were underpaid before, and now they will be spitting in the lattes of your non-tipping customers thanks to your greed.
Are you a fan of the on-demand “get me anything I want” app called Postmates? Well, before you login to place your order, please consider the following event that took place earlier this afternoon.
Postmates delivery drivers, also known as “couriers”, were sent emails from the company that their pay rates would be reduced by 10%. This is the new pay rate in Los Angeles:
Base — $1.35 is what everyone starts at.
Distance — $1.15 per mile from the pickup location to the customer drop off.
Time — $0.10 per minute when they wait for the order for pickup at location. (the timer starts at the pick up location and stops when the courier starts driving to the customer.)
With that said, $4.10 would be the minimum pay per job to the courier. On average, it would take at least 30 to 40 minutes to complete one small order and 50 minutes or more to complete the pick up and delivery of a longer, complicated order. All of this depends on whether the order is ready or needs to be placed at the restaurant and the distances between the courier’s current location, pick up and drop off. This is what the pay rates are currently:
Base — $1.50 is what everyone starts at.
Distance — $1.31 per mile from the pickup location to the customer drop off.
Time — $0.11 per minute when they wait for the order for pickup at location.
The reason for the reduction in pay is that Postmates wants couriers to be busier this summer and make more money by lowering the price of delivery, but there is no indication that the prices for delivery on the customer’s end will be reduced. So lower pay plus lower customer delivery charges equals more money and couriers are supposed to like this news. I simply do not think any smart person would like being told they are going to make less money and work harder and that this would be good for them. (Especially since customers on Postmates are not required to tip, therefore many of them choose not to tip the drivers.)
The turnover rate will become much higher than it is now because highly rated couriers that have been driving for years will quit. Postmates will continue to bring on many new drivers to replace the ones that leave, (mostly low-skilled workers and long term unemployed) to keep the delivery orders going, which is why they can choose to pay the couriers so low. They also do not train new couriers in customer service and therefore pissing off customers by being rude and having showing no professionalism in their interactions with them. They are essentially a factory churning out a cheap expendable gig- economy work force.
Sure, you could say, “Well they should just find another job”, but with the state of the jobs market and the rising cost of housing, working for companies like Postmates is not an option, especially for those who struggle to pay rent and put food on the table. As for those artists and actors that need the flexibility of the gig economy, they will find that they have to choose between pursuing their art or paying the bills just as if they had a “regular” job. So much for “flexibility.”
It is not a shocker that Postmates does all of this to make profit of course, but claiming to care for their couriers in an email by saying “your success is our success” is such an outright lie.