Following an uproar from workers and customers alike, Instacart has overturned its controversial tipping policy. The popular delivery service, along with DoorDash, has been under pressure this week from workers who say the companies are cheating them out of their fair share of tips. Under the previous policies, customer tips were being counted toward — instead of in addition to — workers’ minimum pay guarantee.
Wow Instacart is being incredibly shady by not paying out the tips I specify in the app to shoppers! Have no idea how they can defend this.
My new column is about a controversial tipping practice at @Instacart and @DoorDash. I spent days talking to delivery workers who told me that the way these apps calculate their pay cheats them out of their tips. Basically, the deal is: — workers have a "guaranteed minimum" (In Instacart's case, $10 per batch delivered) — tips added by customers at checkout are put toward those minimums, rather than being paid on top of them — as a result, for some orders, the more a customer tips, the less Instacart/DoorDash has to pay them to meet the minimum (so an order with a $6 tip might only require a $4 additional payment, while a $2 tip might mean an $8 base payout). Do you use these services? If so, do you ever tip in cash to avoid situations like this? #gigeconomy #delivery #workersrights
Erica Graver commented on this
"Instacart and DoorDash’s Tip Policies Are Delivering Outrage" by KEVIN ROOSE via NYT Technology
Next time you want to pay a gratuity to somebody in the gig economy, ask them to put the cap on your pen for you and pay them for -THAT- service. That way, it's not a tip. You're paying them for a completely separate and unrelated service. #capitalism #FTW
The practice of incorporating customer tips into pay calculations so a company can reduce labor expenses is wholly unethical.
Subsidizing base delivery commissions with gratuities is flat out WRONG. The traditional Third-Party delivery model is out of control. Unfortunately, drivers are taking the hit now.
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I use both of these services on a regular basis and am very disappointed to learn that the tips I leave for my delivery person are being pocketed by the company, who already charge a delivery fee and service charges. Moving forward I guess I will be tipping in cash. Whether this is deceptive to the driver's or not, I am not sure, as I have not seen their agreements. But as a customer, I will say that I feel deceived. A tip is a tip and in every other industry it is not acceptable for it to be used as part of the wages.