DoorDash To Offer Delivery Workers Minimum Wage With a Twist

DoorDash delivery workers can now get paid hourly.

The company behind the popular food delivery app recently announced it is giving its delivery workers the option of getting paid hourly instead of per delivery.

However, the announcement's wording showed there is a catch to DoorDash's offer.

Doordash Delivery Worker Hourly Payment Details

DoorDash mentioned in its announcement that it is launching its "biggest-ever update" to the way its delivery workers earn: the company now gives them the option of choosing between Earn by Time (hourly) and Earn per Offer (payment per delivery).

According to DoorDash, Earn by Time is an all-new industry-leading earning mode that lets delivery workers earn a guaranteed hourly minimum rate along with 100% of the tips customers give. Delivery workers who choose this payment option can find the guaranteed hourly rate at the start of a dash, giving an upfront idea of how much they'll earn on that delivery.

The company mentioned it invested in its Earn by Time significantly to create a "rewarding, valuable option for its delivery workers who prioritize consistency and reliability in their earnings when dashing.

However, there is a catch: DoorDash mentioned that its Earn by Time offers a minimum hourly rate for time spent on delivery - from the moment they accept an offer until it's dropped off.

The hourly rate isn't really an hourly rate at all. Instead of being paid for time spent while dashing like an employee working a desk job, DoorDash's Earn by Time only covers the time delivery workers spend since they accepted an offer until they drop a customer's order off, plus tips.

Fortunately, this is exactly what labor rights activists and gig workers want, or at least the start of a satisfying solution. According to Tech Crunch, they historically criticized DoorDash and other companies for only paying workers for "active time," or time spent on a gig, which doesn't account for time spent waiting for an order to be ready for delivery.

DoorDash isn't the only company giving its delivery workers hourly pay - Lyft and Uber are also offering a guaranteed minimum of $18 per hour payment for their delivery workers in New York. Interestingly, DoorDash didn't clarify how much it may offer its delivery workers as an hourly minimum rate.

Other DoorDash improvements

Aside from Earn by Time, DoorDash also announced the addition of its Dash Along the Way option, which allows its delivery workers to select where they want to start dashing and receive offers that takes them directly there.

"We know Dashers regularly commute to their favorite zones to start dashing, and we want that time to be valuable - with Dash Along the Way, we're helping Dashers reduce downtime and maximize efficiency on the road," the company said.

It is also introducing post-checkout tipping, a way for customers to give additional tips to DoorDash delivery workers even after they drop off their order - up to 30 days after delivery.

Last but not least, DoorDash is introducing Location Sharing to its delivery workers, allowing them to share their real-time location with up to five trusted contacts, who can see if they're on a dash, if a dash has ended, or if they're requesting emergency assistance.