DoorDash, Shifting Business Model, Will Offer Drivers Hourly Pay
DoorDash said on Wednesday that it would begin giving its delivery drivers the option to be paid an hourly minimum wage, instead of earning money for each delivery.
The significant shift in compensation could be an answer to concerns that some delivery people are not paid fairly. It could also add an incentive for drivers to pick up smaller orders that don’t pay as well and that they would typically avoid.
Drivers will be able to choose whether they earn money for each order — usually a few dollars in base pay plus compensation for miles driven — or receive a flat hourly amount, DoorDash said.
The hourly rate includes only active time, meaning time between accepting and dropping off an order, and does not include the period when drivers are waiting for the next order. Drivers will be able to toggle between the two payment methods. Tips would be applied on top of the hourly base pay, the company said.
Source: The New York Times
