DoorDash Dashes Way To Immediate Change In Tipping Policy After Public Outrage

There is no question that DoorDash is one of the most popular food service delivery but a recent discovery from the public about how their tip policy works, made a public outrage thus forcing the company to change it immediately.

A New York Times reporter first revealed the information by stating, “DoorDash offers a guaranteed minimum for each job. For my first order, the guarantee was $6.85 and the customer … tipped $3 via the app. But still received only $6.85… was saving DoorDash $3, not tipping me”.

Many speculated that the company was receiving all of the tips from customers and will just give some to their delivery man which is included in their monthly salary. This means DoorDash enjoys all the tips from customers, thus helping add revenue overall.

Though its CEO Tony Xu was quick to respond in the outrage on Twitter by tweeting a thread capped off by this statement, “Going forward, we’re changing our model – the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order. We’ll have specific details in the coming days.”

1/ After a year of research and conversations with thousands of Dashers, we built a pay model to prioritize transparency, consistency of earnings, and to ensure all customers get their food as fast as possible.

— Tony Xu (@t_xu) July 24, 2019

2/ But it’s clear from recent feedback that we didn’t strike the right balance. We thought we were doing the right thing by making Dashers whole when a customer left no tip. What we missed was that some customers who *did* tip would feel like their tip did not matter.

— Tony Xu (@t_xu) July 24, 2019

3/ We did not launch our current model to pay Dashers less. In fact, when we moved to it, our average contribution to Dashers stayed the same.

— Tony Xu (@t_xu) July 24, 2019

4/ Going forward, we’re changing our model – the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order. We’ll have specific details in the coming days.

— Tony Xu (@t_xu) July 24, 2019

5/ Customer obsession and getting 1% better everyday are core values at DoorDash. These beliefs have led us to improvements in the past and they serve as our guide for the future.

— Tony Xu (@t_xu) July 24, 2019

This is how DoorDash tipping system works: