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DoorDash defends controversial workers compensation rules



Despite this month's claims for Instacart's alleged "top-steal", DoorDash defends its own policy of using worker tips to supplement their basic pay. If that sounds slimy, that's it. It's also a good reason to always tip.

In talks with Bloomberg on Thursday, the company's CEO, Tony Xu, seemed to claim that the only reason anyone is upset is that DoorDash has this policy in place because other companies have been asking for similar criteria. He told Bloomberg that the company has been using the model for two years, and it is regrettable that the activities of other companies have misrepresented what we have been doing for two years.

Here's the thing. DoorDash, a food delivery service, relies on the work of its contractors known as Dashers. When people add extra tips to their delivery service tab, they reasonably assume that they complain about the delivery person – not the company. DoorDash previously told Bloomberg that the model had "made Dasher pay more for each delivery," but DoorDash is not hurting the money.

In fact, Xu spoke with Bloomberg this week as the company announced its delivery valuation had risen to $ 7.1 billion. This means that the site has increased by about $ 6 billion in less than a year. While DoorDash collects a lot of money, the workers are shaved off the tips. It is precisely the practice that Instacart has tried to make an attempt before the outcry led to a reversal of the directive.

"Tips should always be separate from Instacart's contribution to buyer compensation," wrote Instacart chief Apoorva Mehta in February in a mid-post on the montage game – which is correct. In addition, Instacart increased the basic salary of its workers and paid its buyers back their hard-earned goddamn gratuities.

Yet, DoorDash – perhaps encouraged by the fact that Amazon supposedly participates in this unbelievably shady practice – seems to be mostly unaffected by criticism. (Although switching to an unfair compensation practice has certainly worked for a company before, in the meantime, redeem tipping for everything, all the time.

[Bloomberg]


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