(HorizonPost.com) – In a recent announcement, DoorDash revealed that it will change its tipping policy in select markets, starting with New York City. Previously, customers were prompted to tip on the checkout screen, with a default middle option already selected. However, DoorDash has now shifted to a post-checkout tipping option exclusively.
The company attributes this change to the increased costs of New York City’s recent minimum wage increase for delivery workers. DoorDash claims that these new regulations will necessitate fee hikes, and thus, the shift to post-checkout tipping is an attempt to maintain affordability for all New Yorkers.
This move follows DoorDash’s recent testing of a feature that warns customers about potential delays when they choose not to tip at checkout. The company has been vocal about its dissatisfaction with the new law in New York City, which raised the minimum wage for delivery drivers to $17.96 per hour. Despite a state appeals court upholding the law, DoorDash has argued that it must pay its workers at least $29.93 per hour of active time.
DoorDash justifies this higher rate by highlighting the additional tax burden faced by its workers, who are classified as independent contractors. The company claims its $30-per-hour rate is twice the city’s $15 minimum wage for other workers. However, critics argue that the emphasis on active time excludes the waiting time between orders, which Dashers do not consider to be on-the-clock work.
The decision to implement post-checkout tipping in select markets aligns with DoorDash’s efforts to adapt to the changing landscape of delivery work. Advocacy groups like Los Deliveristas Unidos and the Worker’s Justice Project have long campaigned for higher pay for delivery workers, citing the risks and associated expenses involved in the job, which can amount to nearly $17,000 annually.
In addition to the tipping policy change, DoorDash has temporarily paused its “Dasher Priority Access” incentive program, which previously offered higher-paying opportunities to top-rated delivery workers. The company explains that due to the minimum wage guarantee in New York City, this program’s benefits will not apply.
DoorDash asserts that the new post-checkout tipping approach is a practical response to Mayor Eric Adams’ recent call for immediate payment of the minimum pay rate to delivery workers. With these changes in place, DoorDash aims to strike a balance between meeting its financial obligations and ensuring the affordability of its platform for its customers in New York City and beyond.
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