DoorDash is introducing a series of changes to its platform, including offering couriers an hourly rate for their active delivery time. This guaranteed rate will be provided in addition to the tips received, with couriers keeping 100 percent of customer tips.
The new option, called Earn by Time, will be available alongside the existing payment model, where Dashers receive payment for each order completed. Currently, Dashers receive a base payment based on factors such as estimated duration, distance, and order desirability, in addition to tips and potential promotional payments. Couriers can now choose between being paid per order or by time for each delivery, with both options displaying the minimum payment amount before selection.
The hourly rate will vary based on the market and will be prorated. Dashers will only be compensated for the time spent between picking up an order and delivering it, excluding the time taken to travel to the pickup location. For instance, if the Earn by Time rate is $15 per hour and a delivery takes 20 minutes, the Dasher will receive $5 plus any tips. Customers will still have the option to add or increase their tip after the delivery, with a 30-day window to do so.
DoorDash is implementing this minimum rate ahead of New York City’s enforcement of a minimum wage for food delivery workers. Starting from July 12th, delivery apps will be required to pay their couriers in the city a minimum of $17.96 per hour, along with tips. DoorDash has been asked for further details on how Earn by Time aligns with this minimum wage requirement and its rollout plans for this option.
Additionally, DoorDash is introducing a new initiative to reduce downtime for Dashers. They will now be able to accept orders while en route to their preferred working area. To enhance safety, DoorDash is implementing a feature that allows couriers to share their real-time location with trusted contacts.
Alongside these new features for Dashers and merchants, DoorDash is also launching its most significant app update to date for customers. The app will now support online SNAP and EBT payments, facilitating orders for enrolled program participants. Users can order from over 4,000 grocery locations across the US, including participating stores like Aldi, Albertsons, Safeway, Meijer, and 7-Eleven. SNAP recipients will also receive two months of free DashPass access.
DoorDash plans to roll out these updates to all users gradually within the next few months. The app update will introduce universal search functionality, enabling users to search for specific items, retailers, or restaurants from almost any section of the app. New tabs, including Browse, Grocery, and Retail, will be added to the bottom of the screen, with Retail serving as a modern-day mall directory. Multiple carts will also be available, allowing users to save their progress while filling out a grocery order and seamlessly switch to ordering dinner before continuing where they left off.
Frequently Asked Questions (FAQs) about couriers
What changes is DoorDash introducing for couriers?
DoorDash is introducing guaranteed hourly rates for couriers, in addition to tips. They are also implementing an option called Earn by Time, allowing couriers to choose between being paid per order or by time for each delivery.
How does the Earn by Time option work?
With the Earn by Time option, couriers will be paid an hourly rate for their active delivery time. This rate is prorated and applies only between picking up an order and delivering it. Couriers will not be paid while they are on their way to pick up the items.
Will couriers still receive tips?
Yes, couriers will still receive 100 percent of the tips from customers. The guaranteed hourly rate is separate from the tips they earn.
What is the minimum wage requirement for food delivery workers in New York City?
Starting from July 12th, delivery apps in New York City will be required to pay their couriers a minimum of $17.96 per hour, along with tips. DoorDash is implementing the minimum rate ahead of this requirement.
What are the new safety features for couriers?
DoorDash is introducing a safety feature that allows couriers to share their real-time location with trusted contacts. This feature aims to enhance safety for couriers while they are fulfilling deliveries.
What updates are being made to the DoorDash app for customers?
The DoorDash app will support online SNAP and EBT payments, making it easier for enrolled program participants to place orders. Additionally, there will be an app update with features such as universal search, multiple carts, and improved navigation for a better customer experience.