Do you get tips as a delivery (DoorDash, Postmates, etc.) driver? Have you noticed something off about your delivery tips or pay after you’ve received tips? RSG contributor Dash Bridges uncovers the murky way tipping is factored into delivery pay.
As you know, there’s a murky quality to the methods by which delivery services pay their drivers. The simple ‘flat fee + 100% of tips’ policy from the Days of Yore (i.e. Spring 2017) is gone. It’s been replaced by guaranteed minimums, mysterious pay boost algorithms and the faint hope of a payment over and above what’s promised. The recent outrage over the $0.80 Instacart payout incident brought a lot of scrutiny to these methods. Certainly, these payment policies sow distrust to the relationship between driver and services.
Most of this scrutiny centers on the tipping portion of payments. Americans understand tipping as an act that supports labor over and above their compensation for the job. Cabbies earn a certain percentage of the fare, but a tip goes fully into their pocket. We assume wait staff, hotel employees and baggage handlers all make consistent hourly wages, and our additional cash all goes into their pockets, independent of their employer compensation.
However, how does tipping truly work when it comes to delivery companies? How are people encouraged to tip, at all, and how do those tips get distributed to delivery drivers? I took a look at the different delivery apps just to see how delivery apps do (or don’t) encourage people to tip.