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Tipping policies should be transparent and easy to find in apps.

The company has since shifted its tipping policy to ensure tips aren't used to subsidize worker pay. If the customer hadn't tipped at all, Instacart would have paid the driver $10.80, but instead used the tip as the person's wage. Earlier this year, an Instacart worker shared receipts that showed they were paid just $0.80 by the company for a gig that took 69 minutes to complete simply because the person who placed the order tipped them $10, which covered the majority of the base pay. Likewise, Instacart has been accused of similar practice. The practice steals tips directly from the pockets of workers, and often isn't make clear to people ordering delivery how their tip is used.ĭoorDash recently announced that it would stop this practice after it faced increasingly intense amounts of scrutiny. The driver ends up with $10 total, as expected, but half of it was paid by the customer's tip. Instead of adding that $5 on top of the $10 earned for the gig, a company might instead count that $5 against the base pay. They complete the delivery and receive a $5 tip. Let's say that a driver expects to be paid $10 on a delivery order from the service they are working for. But what some on-demand apps have done is use tips to essentially subsidize a person's pay. Typically when you tip someone, you expect that money to go directly into their pocket with no effect on the rest of the delivery person's pay. On-demand apps like DoorDash, Instacart, and a slew of others have made it easier than ever to have just about anything brought directly to your doorstep - but in revolutionizing delivery service, the companies the effort have also tried to upend the tipping system.Īs on-demand services have gotten more popular, tipping has been streamlined on their platforms so people can add the amount they want to tip to their order rather than digging around in their pocket for cash once they hear the doorbell ring. Tipping has always been a part of the delivery economy, but the way in which we tip continues to evolve.