How have the recent changes to DoorDash pay affected DoorDashers? Senior deliverer extraordinaire, Dash Bridges, shares how much his earnings have changed with 100 deliveries under DoorDash’s new pay structure below.
This past June, DoorDash CEO Tony Xu announced a major change to the controversial Dasher payout program. I wrote about the anticipated changes to driver pay here. Throughout September, DoorDash began implementing their new pay system in markets across the US. It finally reached Northern California on Monday, September 23.
There is a new era upon DoorDashers, and it’s not all bad news. Here’s what DoorDashers need to know about the latest pay structure.
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What’s New with DoorDash’s Pay Structure
It was time to test the latest iteration of DoorDash’s payout system. In summary, here are the changes:
- DoorDash’s per-order minimum contribution increases from $1 to $2.
- DoorDash will not ‘level up’ payment for poor tips.
- Tipping allowed after delivery completion.
- Better compensation for longer deliveries.
- Exact DoorDash contribution + tip (combined) listed before order acceptance.
With this new DoorDash pay structure, it’s all been laid bare. You know exactly what you’re going to make per order. No hopes and dreams (or disappointment) of an above-guarantee surprise. Even busy period bonuses are added to the initial acceptance screen.
My First 100 DoorDash Assignments
I kept detailed notes of my first 100 assignments in the new system. I knew I’d have to decline a lot more orders (low paying ones in particular). When orders resembled these examples, it was an easy decision – and it happened quickly. The examples below occurred the first night.
I found these payouts insulting, then hysterical. Parking. Pickup. Stoplights. Finding the residence. Each of these orders will take 20-30 minutes. I’d love to know the fate of these orders and orders like them.
Do Dashers take them? Does the customer have to wait hours before someone agrees to deliver? If it takes too long, will DD increase the base amount to make it more attractive? If so, by how much? As a data and customer service nerd, I absolutely want to know.
100 Assignments: The Stats
Prior to the new system, I had a 92-95% acceptance rate.
Let’s take a look at the 78 orders I accepted:
When you accept reasonable orders, you can make the same money you did before. Assuming roughly 2 deliveries per hour, $9.89/delivery is good. I checked my September 1-22, 2019 earnings (prior to new system), and during that period I earned $9.51/delivery.
More takeaways from these orders:
DoorDash’s average base payout was $4.79. Discounting one strange $25.20 payout for a modest order (glitch?), the base payout averaged $4.52.
- 29 of 78 deliveries included peak pay bonuses.
- 33 of 78 deliveries (42%) included a greater tip than DD base payment
- 23 of 78 deliveries (29%) included a greater tip than the total DD payout (base + bonus)
- 13 of 78 deliveries had a $0 tip.
Only 7 of 100 assignments were completed deliveries with $0 bonus and $0 tip. I kicked myself for accepting a couple of them, as they ended up being time-wasting duds. The point is, DoorDash doesn’t plan to pay you a living (or minimum) wage. You need bonuses and/or tips to earn enough to remain afloat!
Additional Notes About the New DoorDash Pay Structure
- Customers now have the option to tip (or add to their tip) for a couple of hours post-delivery. It’s great if you fancy yourself as a Dasher who might earn additional tips for your outstanding service. On the other hand, someone might withhold their tip until after delivery, then either find disappointment or forget, and tip $0. Apparently tips are added without text or email notification. In my 2+ weeks of Dashing in the new system, I’m not aware of any customer who tipped extra.
- Dash earnings are up to date! In the past, at least on my iPhone 7, your daily earnings were always one order behind. After three $6 orders, it would say you’ve earned $12. Now, it displays the full $18. Anyway, it’s a long-term bug fix. Thank you, DoorDash coders!
- This one’s tricky: do you see the difference between these two Peak Pay bonuses? (the ‘+’ refers to an addition to my current order).
The order on the top is from mid-September. Not only is $11.70 an attractive amount, it was also during a $3.50 bonus. I knew when I signed out, my earnings would actually be $15.20.
The order on the bottom was placed within the new system. I thought my rare $7.00 peak pay bonus would increase this delivery’s earnings to an amazing $18.50. But no! Peak bonuses are now reflected in the up front acceptance. The 2nd order wasn’t paying $11.50 + $7.00. It was a $4.50 base + $7.00 peak pay order.
It’s not a DoorDash cheat, at all, but it’s a one-time disappointment/misunderstanding in the new system. For real, though, DD is telling it like it is. Cold facts, indeed!
Final Observations About DoorDash’s New Pay Structure
I find the new payout system both cold and refreshing. The beginning is (and has been) a shock, when Dashers see appallingly low corporate value placed on a delivery, and customers fail to tip.
It’s OUR job as Dashers to tell corporate and customers that, no, we won’t spend 15, 20, 30 minutes on an order paying $3.00. We’ll reject it and wait for the next one. Who’s going to deliver that $3.00 order? I don’t know, and it’s not my problem.
The laws of supply and demand will find a balance. If no one accepts low-paying orders, guaranteed payments will increase. Conversely, if Dashers start earning $25/hr., more drivers will log on and orders will thin out. This harsh transparency of these upfront payouts is, in a way, exactly what we wanted and asked for. Transparency.
That doesn’t mean we’ll like what we see.
Dashers, what do you think of the new pay structure? Do you take all deliveries, including low paying ones? Why or why not?
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-Dash @ RSG