DoorDash Workers Can Finally Get Paid Hourly, But Only During Deliveries
DoorDash Dashers will now have more options for getting paid, though the company said total pay from either earning per hour or per job should be comparable.
With more laws on the books demanding additional pay for gig workers, DoorDash has finally come around to offering some hourly pay for its Dashers, though only when they’re hoofing it to their delivery spot. The food delivery app announced Wednesday that contract delivery drivers can now earn a base hourly pay and still receive “100% of tips” on top of it. “Dashers” can still get paid per offer, but now the app should display a guaranteed minimum amount that they can expect to make per offer before they select the job.
Dashers are only on the clock from when they select a job until after they drop off their package. A DoorDash spokesperson told Gizmodo the “Earn by Time” feature will only be available in certain markets to start, but it will be available nationwide by the end of the year. The company spokesperson said Earn by Time payments are calculated to offer comparable pay to “Earn Per Offer” deliveries, though this service is not available in any of the cities that have passed gig economy earning legislation.
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Delivery drivers can choose which model they want to use for each job, and DoorDash is still emphasizing its old model. With the new “Dash Along the Way” feature, Dashers can set the app to automatically receive offers from zones they’ve selected as a starting point, meaning there could be less running around overall. And for drivers’ friends and family members hoping to keep tabs on a loved one, Dashers can also share their location in-app with up to five contacts. That tracking will also notify friends if 911 was requested while on the job.
It’s perhaps the most radical change for an app of its kind, especially as the gig economy has taken major hits as of late. Just this month, New York City passed a law mandating Uber, DoorDash, and other app contract drivers must receive a minimum wage. That’s a $17.96 floor for Gotham delivery workers to make up for their status as contract workers who don’t get health benefits or compensation for work-related expenses. That minimum can be reached through an hourly wage or through the app’s pay calculations, though that pay is still much less than the $23.82 per hour the city’s Department of Consumer and Worker Protection advocated for last year.
Even when the minimum was less than advocates wanted, DoorDash has complained about the law saying it denies dashers a choice in how they make their money.
DoorDash’s new pay choices also get out in front of other laws like Minnesota’s regulation requiring a minimum wage per mile for rideshare drivers. Seattle, Washington also has legislation coming down the pike that would set minimum wages for gig workers.
A few other new features should help users in food assistance programs. DoorDash said it’s allowing for SNAP and EBT online payments through multiple stores including ALDI, Albertsons, Safeway, Meijer, and some 7-Elevens. Food assistance payments should be available for most of these shops come July, but it’s already available at the participating Albertsons and Safeway locations. The company will also offer a two-month benefits package for SNAP/EBT users with incentives like $0 delivery fees on eligible orders.
For regular users, this latest update also adds numerous features like a “Universal Search” that lets customers shop among multiple stores for general groceries and meals. The new Retail tab also facilitates buying more items other than food, but perhaps the most useful feature is the ability to set up multiple carts. This means you can start a groceries selection earlier in the week, but set up a separate order for that night’s dinner. These features will become available over the next few months in the U.S., Canada, and Australia.
Though the new features are welcome, DoorDash has been under the microscope recently over its fee calculations. A recent lawsuit complained that the same kind of order placed to the same address resulted in two separate fees, based on if they were made on iPhone versus Android. DoorDash has tried to refute those claims, saying the company does not charge users more based on the device they use.
Update 6/28/23 at 1:40 p.m.: This post was updated to include that the new payment method is not available in states and cities that have mandated a minimum wage for gig workers.
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