It took just about a month, but DoorDash finally revealed more details about the ways in which the company is changing how it pays its delivery people, also known as “Dashers.”
In a corporate blog post today, DoorDash CEO Tony Xu wrote that the new policy was created with input from customers, Dashers and members of the Dasher Community Council. He also posted the following image that illustrated the changes:
Here are some highlights from his post:
- Under this new model, base pay from DoorDash to Dashers will increase and will range from $2-$10+ per delivery depending on the estimated duration, distance, and desirability of the order.
- Dashers will also have the opportunity to earn more through promotions. Promotions will include Peak Pay and Challenge Bonuses that we plan to roll out in the coming months.
- Every dollar customers tip will be an extra dollar in their Dasher’s pocket, and customers will be able to tip at checkout or after the delivery. The amount DoorDash pays in base pay and promotions will never vary based on the tip amount.
That last one is especially important, given that DoorDash’s treatment of tips was a big reason the company got into such public trouble in the first place.
Xu goes on to outline key principles guiding these changes, which include making customers feel like their tips are, you know, actually going to the delivery person; that Dashers should earn more money now from DoorDash as well as overall; and that Dashers will have transparency about the nature of each order, including pick up and drop-offs so “they can make an informed choice about which deliveries to accept.”
Xu said that the company has been testing the model for the past month, and that it should roll out to all Dashers next month.
The devil is always in the details, so we’ll have to see how Dashers react to these changes as they go online. But at the very least, the move should alleviate a big headache for DoorDash as it looks to potentially go public next year.