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According to an article on <a href="https://www.restaurantdive.com/news/doordash-to-change-tipping-model-following-public-outcry/559446/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=doordash-reforms-tipping-model-following-controversy-2710579" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">ResturauntDive</a>, DoorDash CEO Tony Xu announced that the company would be &quot;changing its tipping model to compensate its delivery people the entire value of any tip paid through the app.&quot;

Under the old system, which the company rolled out in 2017, the article states that &ldquo;DoorDash <a href="https://www.hrdive.com/news/tech-workers-to-doordash-we-wont-work-for-you-until-your-drivers-earn-mor/549751/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=doordash-reforms-tipping-model-following-controversy-2710579" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">used tips given to delivery workers</a> through the app to subsidize their base pay. If the amount of a tip went over a driver&#39;s base pay, the company would use it to subsidize the driver&#39;s pay, thereby paying less into their wage than if the driver had not received a tip.&rdquo;

As the delivery mobile app market grows, tech workers are demanding better conditions and higher pay. According to the article, in March, &ldquo;more than 100 tech workers <a href="https://www.hrdive.com/news/tech-workers-to-doordash-we-wont-work-for-you-until-your-drivers-earn-mor/549751/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=doordash-reforms-tipping-model-following-controversy-2710579" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">signed an open letter</a> pledging not to work for DoorDash until it set a minimum pay rate of $15 per active hour working, paid tips to workers in addition to their base pay and provided detailed information on pay.&rdquo;

In response to the controversy, Xu stated: &ldquo;It was clear from recent feedback that we didn&#39;t strike the right balance. We thought we were doing the right thing by making Dashers whole when a customer left no tip. What we missed was that some customers who did tip would feel like their tip did not matter.&quot;

To read the full article, click <a href="https://www.restaurantdive.com/news/doordash-to-change-tipping-model-following-public-outcry/559446/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=doordash-reforms-tipping-model-following-controversy-2710579" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">here</a>.

DoorDash Reforms Tipping Model Following Controversy

1851 Franchise

The third-party delivery app responds to a public outcry in regards to its payment structure.


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DoorDash Reforms Tipping Model Following Controversy

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