In a blog post, CEO Tony Xu said that the company would no longer use the tip money to cover drivers' base pay.
After a workers' rights organization reported in February that DoorDash using tips to cover drivers' base pay, the company promised to look into its policies. On August 22, DoorDash CEO Tony Xu said that under the new model, workers will get 100 percent of customers' tips. The new model is set to roll out next month.called out DoorDash for their payment structure.
DoorDash employees frequent the company's booth at the Night Market event presented by the Los Angeles Times on May 8.that a new payment structure would be coming next month. According to Xu, DoorDash will increase the base pay drivers receive to $2 minimum, with a potential to earn more than $10 on a delivery, depending on how long the delivery is expected to take and how far away it is.
In the post, Xu claims the original model was popular with delivery drivers, and that it had improved retention and worker satisfaction. "We thought we were doing the right thing for Dashers by making them whole if a customer left no tip, but the feedback we've received recently made clear that some of our customers who were leaving tips felt like their tips didn't matter," Xu added.
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