DoorDash Says It Will Change Controversial Tipping Policy
- Food delivery company had used tips to meet pay guarantees
- DoorDash offers few details about new approach to tipping
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DoorDash Inc. Chief Executive Officer Tony Xu, facing public criticism that the food-delivery company pays drivers less when they receive tips, said his company would rethink its approach to handling in-app tips.
Unlike many of its competitors, DoorDash relies on customers’ tips to meet guarantees to drivers about how much they’ll earn on a particular delivery. In some cases, much of a driver’s pay for a delivery can come from a tip. If a tip is large enough, the San Francisco-based startup may itself pay as little as $1 to a driver.