Instacart and DoorDash’s Tip Policies Deliver Outrage to Workers, Customers

From today’s New York Times:

Delivery has always been a rough business. Since time immemorial, couriers have braved the elements, gotten by on meager wages and dealt with annoying customers, growling dogs and fifth-floor walk-ups, all for the chance of a big tip from a happy customer.

But thanks to two Silicon Valley upstarts, even those tips are in doubt.

This week, Instacart and DoorDash — two giants of the app-based delivery industry, collectively valued by investors at more than $11 billion — have come under fire from critics who have accused the companies of taking advantage of their workers with deceptive tipping policies. Both companies acknowledged putting customer tips toward workers’ minimum pay guarantees, in effect using them to subsidize their own payouts.

“It’s offensive, it’s unethical and in this climate, it’s a very dumb thing to do,” Matthew Telles, an Instacart courier based in Chicago, said this week.

Ashley Knudson, a Seattle-based Instacart worker, said she felt “cheated” by the company.

“I have gone from making $1,000 a week and providing for my family to now, if I’m lucky, making $600 a week,” she added.

Read the complete article here.