![]() ![]() Yet DoorDash's manipulative exploitation of its workers is evidently great for its business model and its investors. According to CNBC, Doordash seized one-third of the digital food delivery sales in the U.S. Worse, only 11 percent of DoorDash jobs paid above the U.S.'s laughable federal minimum wage. What it boils down to is that DoorDash has created a pay model in which workers appear to be making a decent wage on paper, but which, after expenses, is barely more than $0. The company has declined to disclose how much of that gross amount is tips, how much is pay from the company, how many miles workers drive (and thus much much mileage expense they incur), what periods of time they consider to be part of an 'active hour,' or other details and costs involved in achieving that reported level of gross earnings. In November 2019, DoorDash claimed its new pay model would result in gross hourly earnings of more than $18.īut as the report explains, it's unclear what qualifies as "gross" earnings: Further, jobs with higher tips still tend to include lower pay: the set of jobs with tips of less than $1 pay 1.8 times as much as those jobs with tips of more than $8, on a gross hourly pay basis. Just 11% of jobs pay more than the federal minimum wage of $7.25/hour, after expenses, and only 2% meet the standard of $15 + expenses. Nearly a third of jobs actually pay less than $0 after accounting for these basic expenses. They only factor in work expenses beyond mileage and payroll taxes - which means the real wages may be even more depressing. The estimates made in the study don't take into account the cost of paying for public insurance benefits. All of the data was from November and December 2019, after the company implemented a new pay model. Working Washington crunched pay data from 229 delivery jobs from Dashers around the United States, and found that the workers were making an average of $1.45 an hour, after taking into account the costs of mileage, additional payroll taxes that add up for independent contractors, and the lost work time as workers wait for the next job. Similar to Uber drivers or TaskRabbit workers, the company advertises that, by becoming a Dasher, you can "be your own boss" and "enjoy the flexibility of choosing when, where, and how much you earn." The basic premise is that the compay's contract delivery drivers, or "Dashers," deliver food to customers who order on the mobile app. ![]() A new, in-depth quantitative study released this week, as part of a worker campaign in collaboration with the worker rights non-profit Working Washington, found that contract delivery workers for food delivery company DoorDash earn $1.45 per hour on average, after other expenses are accounted for.ĭoorDash is an on-demand prepared food delivery service. As if the statistics on the federal minimum wage weren't dismal enough, leave it to Silicon Valley to figure out "innovative" ways to pay workers even less. The national minimum wage of $7.25 an hour has not changed in a decade, and there is widespread agreement that it is far below what constitutes a living wage anyway. ![]()
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