Yes! Seems like a big step in defeating the no-benefits, gig work system.
By Kellen Browning
Kellen Browning reports on DoorDash and other gig companies.
June 28, 2023
Updated 10:41 a.m. ET
DoorDash said on Wednesday that it would begin giving its delivery drivers the option to be paid an hourly minimum wage, instead of earning money for each delivery.
The significant shift in compensation could be an answer to concerns that some delivery people are not paid fairly. It could also add an incentive for drivers to pick up smaller orders that don’t pay as well and that they would typically avoid.
Drivers will be able to choose whether they earn money for each order — usually a few dollars in base pay plus compensation for miles driven — or receive a flat hourly amount, DoorDash said.
The hourly rate includes only active time, meaning time between accepting and dropping off an order, and does not include the period when drivers are waiting for the next order. Drivers will be able to toggle between the two payment methods. Tips would be applied on top of the hourly base pay, the company said.
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DoorDash, which uses gig workers to transport food and other deliveries, announced the change as part of Dash Forward, a product event marking DoorDash’s 10th anniversary.
The Gig Economy
Becoming a Dirty Word: Work for companies like Uber and Lyft once carried appeal for offering flexibility. But now, “gig work” is used by some as shorthand for a raw deal.
Poor Working Conditions There are an estimated 65,000 delivery workers in New York City, riding bikes and scooters, day and night, often in terrible weather. The city has created very little infrastructure to support them.
A Brutal Math: Food delivery soared in popularity during the height of the pandemic. But as customers become increasingly less inclined to tip generously, it is getting way harder to make a living.
Proposition 22: A California appeals court mostly upheld a ballot measure passed by voters in 2020 that classified Uber and Lyft drivers as independent contractors rather than as employees.
DoorDash said it was adding the payment option in response to driver feedback, and because it wanted to give drivers more decision-making power.
“One of the things we’ve heard a lot is around choice: Choice of when, where and how they earn is really important,” said Cody Aughney, head of the company’s Dasher & Logistics team.
The relationship between gig workers and companies like DoorDash and Uber has been scrutinized in recent years by regulators and labor activists. The biggest questions have been over how those workers are classified and whether they are adequately paid.