Despite thefalloutearlier this calendar month over aver “ tip stealing ” on the part of Instacart , DoorDash is defending its own insurance of using worker tip to supplement their base wage . If this sounds ugly , it is . It ’s also a good reason to always tip in cash .
Speaking withBloombergon Thursday , the company ’s CEO Tony Xu appeared to intimate the only cause anyone ’s disturbed that DoorDash has this policy in place is because other caller have beencalled out for standardized practices . He told Bloomberg that the company has used the model “ for two long time now , and it ’s unfortunate that the activities of others have mischaracterized what we ’ve been doing for two age . ”
Here ’s the affair though . DoorDash , a food delivery serving , rely on the labour of its contractor call “ Dashers . ” When people add additional tip to their deliverance service lozenge , they reasonably assume they are tipping the delivery soul — rather than the company . DoorDash previously toldBloombergthe example “ was plan to ensure that Dashers are more fairly right for every delivery , ” but DoorDash is n’t incisively hurting for immediate payment .
In fact , Xu spoke with Bloomberg this calendar week as the company was announcing its evaluation had skyrocketed to $ 7.1 billion , which the site observe is up roughly $ 6 billion in less than a twelvemonth ’s time . Per Bloomberg :
Investors have n’t been deterred . Dragoneer Investment Group and Singapore ’s body politic - owned investment firm , Temasek Holdings Pte , together led the new $ 400 million investment in DoorDash , the company articulate . The $ 7.1 billion rating is up from $ 1.4 billion less than a year ago . The mint crest an centre - pop up year of fundraising for DoorDash , which raised$535 millionin March and$250 millionin August .
So while DoorDash is raking in raft of money , its workers are having their tip shaved . It ’s the very practice thatInstacart attempt to give a shotbefore outcry go to its reversing the policy .
“ tip should always be freestanding from Instacart ’s part to shopper compensation , ” Instacart CEO Apoorva Mehta pen in aMediumpost in February in reception to the mounting backlash — which , correct . In add-on , Instacart raised the base pay of its workers and back ante up its shoppers their hard - earned damn tips .
Still , DoorDash — perhaps emboldened by the fact that Amazon is also reportedlyengagingin this incredibly louche practice — look to remain mostly undeterred by literary criticism . ( Though shaming a companionship into changing its unfair recompense practices has certainlyworkedbefore . ) In the meantime , confidential information in hard cash . For everything . All the metre .
illumination : Added setting on DoorDash ’s funding .
[ Bloomberg ]
doordashInstacart
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