DoorDash announced on Wednesday, June 28, that it would begin offering delivery drivers an hourly minimum pay on top of tips and aside from a per-delivery rate.
According to The New York Times, concerns that certain delivery workers are not paid properly may be addressed by this substantial change in salary. It may also provide drivers with an incentive to accept lower-paying, lower-volume requests.
In Honor of the Company's 10th Anniversary
DoorDash claimed its drivers might choose to be paid an hourly rate instead of a percentage of the total order, which is often a few dollars in base pay plus compensation for kilometers traveled.
Time spent waiting for the next delivery is not included in the hourly fee, but only the time spent actively picking up and delivering orders. The drivers will have the option of accepting either form of payment. The corporation said that tips would be added to the hourly wage.
DoorDash, an on-demand delivery service that employs independent contractors, made the announcement during its product event, Dash Forward, held in honor of the company's 10th anniversary.
Gig Workers and Issue of Proper Salary
According to the company, it was in reaction to driver feedback and a desire to offer workers greater autonomy that led to the addition of the new payment option.
Cody Aughney, leader of the company's Dasher & Logistics team, stated, "One of the things we've heard a lot is around choice: Choice of when, where, and how they earn is really important."
Gig workers and their relationships with businesses like DoorDash and Uber have come under increased scrutiny from authorities and labor groups in recent years. The classification of these employees and their fair compensation have raised the most concerns.
Most gig drivers operate as independent contractors without the protections provided to regular workers. They have long griped about being exploited and underpaid by businesses.
DoorDash has said that delivery drivers can expect to make around the same amount of money whether they choose to be paid hourly or per delivery. The corporation has announced that the minimum wage would be between $10 and $19.50 per hour, depending on location.
DoorDash allows drivers to freely choose between hourly and per-delivery compensation. But due to state and local legislation mandating a minimum wage for drivers, the new system will not be implemented in California, Seattle, or New York.
The Verge also mentioned that only certain orders will provide the option to get paid by the hour, as DoorDash says that drivers may only turn on the feature at the "start of every dash where Earn by Time is available."
