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Amazon, DoorDash will keep their controversial approach to driver tips



Image: Boston Globe via Getty Images

Instacart heard the cries of an angered internet and took action. Amazon and DoorDash, on the other hand, seem content to dig in.

It was online anger that led to change its policy on tips, which were previously used to pay the base of the company's gig-economy delivery workers. As anyone who has ever worked in a service industry will tell you, tips are additive;

"Tips should always be separate from Instacart's contribution to shopper compensation," Instacart CEO Apoorva Mehta wrote in an email to employees.

In the days since the Instacart news, two other stories surfaced at similar policies embraced by DoorDash, a restaurant delivery service, and Amazon Flex, the online retailer's version or PostMates. And in both cases, the companies indicated at the policy will stand.

The DoorDash policy, referenced in an NBC News report, works the same way, by the company's own admission.

"It was designed to ensure that Dashers are more or less compensated for every delivery," a spokesperson told Bloomberg. "Since implementing this pay model in 2017, Dasher retention and overall satisfaction has increased significantly while average delivery times have decreased." A statement from the company reiterated the Flex program's promise, that "delivery partners still earn $ 18-25 per hour, including 100% of tips." But the paper also pointed to internal emails sent to drivers in which Amazon said it would use "any supplemental earnings" to guarantee that $ 18-25 per hour.

Instacart's willingness to hear feedback and evolve its policies by critics or DoorDash and Amazon. But as Mashable's own Rachel Kraus pointed out on Wednesday, there is a deeper issue here with Silicon Valley interests and exploitative practices. A company's bottom line only after public outrage ensues. "

[h/t The Verge]

[h/t The Verge]

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