# New DoorDash Pay Model - Beta



## Tequila Jake (Jan 28, 2016)

DoorDash says they're going to beta test this new pay model in Phoenix. I can't figure out if it will be good or bad for us from the limited information. The FAQ isn't particularly different than this email but to get to it, you have to click through to the Phoenix market.

We wanted to let you know that we are planning to begin piloting a new model for paying Dashers on DoorDash in Phoenix. This is an early "beta" test designed to help us gather feedback about the new model and learn how it impacts Dashers and customers on the platform.

Basically, it sounds like when you get an alert, it tells you the total pay including tip and you get to decide whether to accept. They're supposed to be rolling it out across Phoenix over the next couple of weeks. I'll post feedback when I get added.

My initial reaction is it will lower the average pay per delivery but might encourage drivers to pick up the crappier orders (like an $8 McDonald's order -- undoubtedly going to a stoner who doesn't tip, imo).

Here's the email - what do you think?

*Here's how it works:*

With this test, instead of receiving the same amount for each delivery, delivery earnings will now be based on estimated effort.

When your account is included in the test, you will now see the exact amount of money you will make for completing a delivery on the Accept Order screen. This amount includes both 100% of the customer tip as well as delivery pay from DoorDash.

The total amount you'll receive is calculated based on a variety of factors including distance, size of the order, Dasher place orders, restaurants with long prep times, and more.

*What we hope this means for you:*

Delivery earnings are now tied to estimated effort. We've long heard that Dashers don't feel it's worthwhile to deliver from restaurants that are farther away or more complex to navigate. Now these deliveries will earn you more money, making delivery pay more fair for all Dashers.
Delivery pay is more transparent than ever and you're in control of how much you make. As always, you get to choose which deliveries you complete. But now you'll know exactly how much you'll make for that delivery, so you can better choose which ones you want to do.
Increased pay for more deliveries. Because deliveries are tied to estimated effort, longer distance deliveries and Dasher Place orders will now earn you more money.

Dasher accounts will slowly be transitioned onto this new model over the next few weeks. Be on the lookout for a text message when your account has been updated as well as feedback surveys where you can share your thoughts on the new experience.

If you have other questions you can visit our FAQ here.

Thanks!

The DoorDash Team


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## Jmasterzero (Oct 21, 2016)

Looks like they're going towards a Gubhub type of model. Seems better than their current model, but usually a revamping of pay tends to screw the driver.


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## observer (Dec 11, 2014)

Tequila Jake said:


> DoorDash says they're going to beta test this new pay model in Phoenix. I can't figure out if it will be good or bad for us from the limited information. The FAQ isn't particularly different than this email but to get to it, you have to click through to the Phoenix market.
> 
> We wanted to let you know that we are planning to begin piloting a new model for paying Dashers on DoorDash in Phoenix. This is an early "beta" test designed to help us gather feedback about the new model and learn how it impacts Dashers and customers on the platform.
> 
> ...


How does Door dash know how much the customer is going to tip?

What happens if the customer doesn't tip?

Will Door dash make up difference?

Or is this a way to cheat drivers out of their tips?


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## andaas (May 19, 2015)

observer said:


> How does Door dash know how much the customer is going to tip?
> 
> What happens if the customer doesn't tip?
> 
> ...


All in-app tips in DoorDash are set when the customer places the order, not after a completed delivery. The app defaults to 15%, the customer has the choice to adjust or remove this amount. With the "old" system, drivers were not informed of the tip amount until the end of the shift.

DoorDash would not need to make up a difference, they will just be making the trips transparent to the drivers before accepting orders.


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## Jagent (Jan 29, 2017)

Sounds like they are at least making an effort to improve things. I hope it works out for everyone.


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## observer (Dec 11, 2014)

andaas said:


> All in-app tips in DoorDash are set when the customer places the order, not after a completed delivery. The app defaults to 15%, the customer has the choice to adjust or remove this amount. With the "old" system, drivers were not informed of the tip amount until the end of the shift.
> 
> DoorDash would not need to make up a difference, they will just be making the trips transparent to the drivers before accepting orders.


I think that until they actually change the app we won't be able to evaluate the changes.

This,

"When your account is included in the test, you will now see the exact amount of money you will make for completing a delivery on the Accept Order screen. This amount includes both 100% of the customer tip as well as delivery pay from DoorDash."

doesn't say the tip amount will be shown, it just says it will be included as part of the pay. From the way I read it the total amount of pay will be shown, not necessarily how the pay is split up.



observer said:


> I think that until they actually change the app we won't be able to evaluate the changes.
> 
> This,
> 
> ...


Doordash delivers here in Long Beach. But is kind of expensive. A 10 dllr order used to cost 22 dllrs. Uber recently started delivering and a 10 dllr order is 15 dllrs tip included.


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## andaas (May 19, 2015)

observer said:


> doesn't say the tip amount will be shown, it just says it will be included as part of the pay. From the way I read it the total amount of pay will be shown, not necessarily how the pay is split up.


I agree, my meaning was to say that the driver will be shown the total earning for each job upfront. How much is tip vs. how much is DD pay isn't going to be broken down. To me, "tip transparency" means that I will see how much each delivery is worth, inclusive of tip, before accepting.



observer said:


> Doordash delivers here in Long Beach. But is kind of expensive. A 10 dllr order used to cost 22 dllrs. Uber recently started delivering and a 10 dllr order is 15 dllrs tip included.


Uber can't keep that up indefinitely, as Uber is subsidizing the driver pay to compensate for the super cheap delivery. The customer only pays a "booking fee" for each delivery on top of the food/tax cost. Any boost/surge/excessive mileage payment is coming from Uber.

Uber is taking a HUGE cut from the restaurants as well (I think 30-40%), and many restaurants, while happy with the increase in volume, are not happy with EATS being a loss leader. Delivery is supposed to grow your customer base and bring more customers into your store over time. If they only get take out because it's only $4... then the restaurants will bail out over time.


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## flexian (Aug 16, 2016)

andaas said:


> Uber is taking a HUGE cut from the restaurants as well (I think 30-40%), and many restaurants, while happy with the increase in volume, are not happy with EATS being a loss leader.


i think on some level the restaurant staff are aware of this, as picking up for UberEATS (err...sorry..."Uber Delivery") is a pretty grim affair

they always seem super enthused about Amazon, i have no idea why........



observer said:


> doesn't say the tip amount will be shown, it just says it will be included as part of the pay. From the way I read it the total amount of pay will be shown, not necessarily how the pay is split up.


if true, this means it is possible that big tippers might end up subsidizing the Door Dash company's operations to some extent (beyond the initial DD fee)


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## andaas (May 19, 2015)

flexian said:


> if true, this means it is possible that big tippers might end up subsidizing the Door Dash company's operations to some extent (beyond the initial DD fee)


The DoorDash model would not work without customer tips. I need more than $4-4.50 per delivery, unless every delivery has a total mileage <3 miles, takes me 10 minutes end to end, and I can complete 5 or more per hour.


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## Taratreehugger (Jun 4, 2017)

So far I am not liking this. I am doing the same type of orders as always, takes me at least half an hour for each one, and my delivery fee before tips is less than $5 for every one. Unless the tips go up, this is a pay cut.


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## uberboy1212 (Jan 10, 2017)

I like the new pay model so far. Ive always accepted almost every order so this def benefits me more. I am averaging almost a dollar more per order. I can see how the new model would be bad for someone that only accepts big orders and decclines all the smaller ones. The ceiling is lower now but the floor is def higher.


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## Tequila Jake (Jan 28, 2016)

After a couple of months, it seems the average per order is about the same. Regular orders seem to pay less — maybe $2.50/order plus tip. However, place it yourself orders pay better. It's hard to figure the breakdown but I'm getting $8+ an order for less than $20 of food (including tip). 

Ive also noticed that the DoorDash earnings on the Accept screen are lower than actual earnings for large orders (over about $75) but you can't figure this out until after you end your dash. 

I'd like to see the fee and tip broken out separately per order instead of per shift.


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## PrestonT (Feb 15, 2017)

uberboy1212 said:


> I like the new pay model so far. Ive always accepted almost every order so this def benefits me more. I am averaging almost a dollar more per order. I can see how the new model would be bad for someone that only accepts big orders and decclines all the smaller ones. The ceiling is lower now but the floor is def higher.


Even though I often make a little less than I would have under the old model, I prefer the new model now that I've gotten used to it. I am taking longer deliveries than I used to because I am being ensured I'll make enough for it to be worthwhile, vs guessing and hoping by order size, who the merchant is and where the destination is under the old system.


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## Cody6666 (Apr 18, 2017)

I just did a shift today doing the new model for the first time. I like it a lot more then the old model. Now I know how much tip I am going to get instead of taking every order and hoping the tips will be good. I did 3 hours today and I made $20 a hour and I had 5 orders. I am only going to take orders that make over $1 a mile to maximize my pay.


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## PrestonT (Feb 15, 2017)

A dollar a mile is my threshold as well. Except McDonald's if it isn't 2 a mile I won't take it.


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