One month ago, DoorDash Inc. Chief Executive Tony Xu promised to change the company’s tipping policy following an outcry from customers and food delivery workers. On Thursday, the company released the outline of a new pay model that it says will increase delivery workers’ earnings from the app.
The revised policy, which the company plans to roll out widely next month, includes an increase in base pay for deliveries, which will now range from $2 to $10 or more per trip, and a promise that customers’ tips will be added on top of a “Dasher’s” earnings paid by the company, regardless of the delivery fee or promotions.
“The decision to change our model was difficult,” Xu wrote in a blog post published on Thursday, saying the company’s model was built to consider worker feedback, despite mounting public criticism. “We realized that we couldn’t continue to do right by Dashers if some customers felt we weren’t also doing right by them,” he added.