DoorDash is offering hourly pay to fix a problem with food orders
Some DoorDash drivers are fed up with the unpredictable delivery business: Some orders can take longer than expected due to circumstances outside of workers' control. The company said it has a solution.
New York CNN
Some DoorDash workers are tired of the unpredictable nature of delivery: some orders may take longer to deliver than anticipated due to factors beyond their control. The company has said that it will find a solution.
DoorDash announced Wednesday that it will start paying its delivery drivers on an hourly basis. This is to give workers a better idea of what they can expect to earn in a given shift. DoorDash announced the new payment model just a few days after criticizing New York City’s minimum wage for app-drivers.
Delivery service Dashers will be able to earn an hourly minimum wage in addition to tips. The clock begins when the Dasher accepts a delivery and ends when he or she completes the delivery.
DoorDash announced the change as part of an array of changes to celebrate its 10th birthday. The company noted that this new payment option was 'the largest-ever update in the way Dashers are paid.' The new payment option will be available nationwide until the end of this year.
How it works: Before accepting an offer, drivers will see the amount they can earn per hour. Prior to this, delivery workers received payment per delivery. This option is still available. The company stated that the hourly rate was calculated to be similar to what delivery workers would earn.
Cody Aughney of DoorDash Dasher and Logistics Business Teams, said that the hourly rate gives Dashers the assurance that they will be paid for their time, even if they are stuck in traffic, or waiting on a slow restaurant order.
He said that he had spoken to Dashers who were more consistent. They want to know how much money they will make from their time Dashing.
According to the company, hourly rates will not be available in markets with a minimum wage set by law for drivers.
New York City announced recently a new minimum wage for app food delivery employees. According to the mayor's office, delivery workers in New York City earn about $7.09 an hour. The new rate, however, will allow them to eventually earn at least $ 19.96 per hour. On July 12, the pay will increase to $17.96 per hour, and then to almost $20 an hour by April 2025.
DoorDash announced in a press release around the announcement of the city that it was considering litigation to fight the 'extreme' policy. It said it went beyond the standards held by other industries, though it wasn't against a minimum wage.
The company announced Wednesday that it will make other changes to help drivers earn more. These include allowing customers to add or increase their tip up until 30 days after the delivery. They also introduced a new feature called "Dash Along the Way" which matches drivers with orders along their commute routes. As a safety measure, it allows drivers to share their location with five contacts.
Austin Haugen who heads the product team at DoorDash for Dasher and Logistics said that the changes were aimed at increasing Dashers' earning potentials and giving them more peace of mind.