By Aimee Picchi
June 28, 2023 - CBS News
DoorDash said it is changing the way it compensates its food delivery workers by giving them the option of earning a minimum hourly wage, rather than be paid by delivery.
The change comes amid criticisms of gig-economy services like DoorDash that their workers may not even earn the minimum wage due to the way the companies structure their pay, which are typically based on per-service fees rather than hourly rates.
The new option will allow DoorDash deliverers to choose to be paid an hourly rate that begins from the time they accept a delivery and ends when the delivery is completed, as well as receiving 100% of the tips, the company said in a Wednesday statement. When they get an order, delivery workers can toggle between the two payment methods, opting for whether they want to take the hourly rate or be paid on a per-delivery basis, it added.
DoorDash didn't specify the minimum hourly wage it will offer workers, although the New York Times reported that the company said the range will be somewhere between $10 to $19.50 per hour, depending on the region.