DoorDash, Please Don’t Change Your Pay Structure
There has been much discussion lately regarding the new pay structure for their drivers. A lot of it is simple confusion about exactly how it works and how tips are applied.
The current model is rather simple; DoorDash pays $1 plus 100% of tips. However, if the tip is not enough to cover the zone’s minimum pay, DoorDash provides additional boost pay.
It’s this boost pay that misunderstood and greatly overlooked. As an example, there are other gig companies that pay a flat rate plus 100% of tips, but without a boost.
How does that work? Well, not too well for low tip or non-tip orders. In those cases, the drivers only gets the base rate which is typically around $4. Here’s the problem; drivers don’t want to take $4 runs which leaves customers dissatisfied. Who wants to put in an order only to find no driver will take it?
DoorDash solves this with a pay boost. Let’s use a non-tipper as an example. DoorDash may pay $6…$7…and even over $8 when no tip has been provided. The boost pay is mainly determined by metrics such as distance and complexity of the order. If, for example, the Dasher has to place the order, the boost is typically higher.
Lately, misinformation that DoorDash “steals” tips has been making its way around the web. Again, the pay model, which is very transparent, is drivers receive $1 plus 100% of tips. So if a customer tips $5, the drivers receives the entire tip. If a customer tips $15, the driver receives the entire tip. It’s only that in those situations, DoorDash doesn’t have to provide the boost.
I have worked with DoorDash before the pay change and simply put, I’m making more. I accept far more orders due to the boost, more customers get their food delivered and everyone ends up winning.
If (and I hope this doesn’t happen) the pay model reverts back to the way it was before, all drivers will see is far more base pay orders and end up earning less.