DoorDash reveals its new pay model for workers after being accused of stealing tips

Tony Xu DoorDash

Steve Jennings/ Getty Images

DoorDash CEO Tony Xu

  • DoorDash has updated its pay model for workers a month after announcing that it would make changes.
  • The company came under fire in July after accusations of stealing tips from some workers. 
  • Under the new model, all customer tips will be passed through to "dashers," beginning next month. 
  • Visit Business Insider's homepage for more stories.

DoorDash on Thursday unveiled a new pay model in which workers will keep all tips, following criticism of its previous method that withheld some tips from couriers.

The changes were first announced last month by CEO Tony Xu. In the meantime, some tips continued to fall through the cracks, angering some workers who spoke to Business Insider.

Beginning in September, the company said, all tips will be added on top of base pay and promotions, the company said, in addition to any promotions like peak pay or challenges.

Here's how it will work:

"Under our old model, DoorDash would boost pay if a customer left little or no tip," the company said in a blog post. "Although boost pay was intended to help Dashers, we recognize that it also had the unintended effect of making some customers feel like their tips didn't matter. Under our new model, every dollar a customer tips will be an extra dollar in their Dasher's pocket. If you leave a $3 tip on your order, your Dasher will earn an extra $3."

The new model will also continue to ensure that "Dashers," as the company calls its couriers, will see the details of every order up front so that they can choose to accept or decline the request, the company said. A guaranteed base pay will continue to exist for each order.

Amazon, which had also come under fire recently for a pay model critics called predatory, also announced changed to its pay model on Thursday, The Verge reported.

Are you a DoorDash worker or employee? Have a news tip? Get in touch with this reporter at  Secure contact methods are available here. 

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