DoorDash and Amazon Won't Change Tipping Policy After Instacart Controversy
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February 10 '19 at 07:11 AM
By BeauHD from
Slashdot's it's-hard-being-a-gig-worker department
An anonymous reader quotes a report from Forbes: The tipping controversy that prompted Instacart to reverse a compensation plan to its contract workers isn't likely to go away: Rivals DoorDash and Amazon Flex are continuing to adjust driver pay based on how much they get tipped, saying doing so ensures a minimum payout. The practice, which has its roots in the way brick-and-mortar restaurants pay waitstaff, has been adapted to suit the needs of app-based delivery companies. The difference is that gig-economy workers are independent contractors, and so aren't protected by the minimum wage laws. Instacart, a $7.6 billion grocery delivery company, made a change in October 2018 that workers would receive at least $10 per delivery order. Customers and shoppers didn't realize that the tips were counting towards that minimum instead of being a bonus on top. So if someone tipped more, Instacart effectively had to pay less. That's how one Instacart delivery driver ended up with Instacart only paying 80 cents and the rest of the minimum being met with tips.
article continued at Slashdot's it's-hard-being-a-gig-worker department
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: Large flux of old-but-been-broken news stories coming through.
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