What It's Really Like To Work For DoorDash

With the slogan "Your time. Your goals. You're the boss," DoorDash positions itself as an employer of choice for those looking for work flexibility (via DoorDash). And this is the main appeal of the job for most Dashers — being their own boss and the freedom to take on as much or as little work as they wish. All while making the most of the entrepreneurial spirit of working as an independent contractor.

Jerry Graham, who has been driving for DoorDash for around six months, said he was attracted to the job because it meant he no longer had to deal with a boss. "Almost every time I've left a job, whether it was a side hustle, day job, or contract work, it was about my boss ... Not having a boss is a big bonus for me," he wrote on Kinda Frugal. Mike Hayes, who works as a Dasher in Oregon, told Business Insider that he doesn't mind being an independent contractor because the gig lets him take days off and look after his children while his wife is at work. Nevertheless, he was also quick to point out that the flexibility of the job has its limits, "People eat at set times, so my schedule revolves around when people are hungry, rather than when I want to work."

Since DoorDash's base pay and peak pay system just don't cut it, Dashers rely on gratuities to bolster their wages. Customers can tip when placing their order through the app or after the food is delivered to their doorstep (via Ridester). When deciding whether to accept an order, DoorDash drivers can see their total earnings per delivery, including the base pay, peak pay (if applicable), and tips. However, it's only after the delivery is completed that they see the breakdown of the amount they have earned (via Shop Food).

Since drivers see the entire amount before accepting the delivery, orders without tips usually take a while to get picked up. Mike Hayes, who Dashes for the company, told Business Insider, "Offers with the lowest tips generally get passed down through different Dashers before someone accepts them. My piece of advice for customers is to tip more than $5 on your delivery if you want it to arrive fast."

Up until July of 2021, Dashers were able to see the monetary breakdown of each delivery — including the tip — by downloading a third-party app called Para. Almost 200,000 Dashers signed up for the app within months of its release. However, last year, DoorDash rewrote its code, cutting Para off. This loss of tip transparency was one of the reasons why some Dashers went on strike on July 31, 2021 (via Vice).

Since tips make a huge difference to the income of DoorDash drivers, it's little surprise that orders with low, or no tips, get rejected. So are there repercussions for a Dasher who repeatedly hits the decline button on those pesky $3 orders? The answer is both yes and no. As independent contractors, Dashers are free to accept or decline each order. And while DoorDash cannot take any punitive actions against a driver who rejects multiple orders, declining orders can prevent a driver from qualifying for the company's Top Dasher program. (via EntreCourier). Along with some other requirements, Top Dashers need to accept at least 70% of orders offered to them. They are then offered "priority-access to high-value orders ... on top of being able to dash anytime, without having to schedule."

While at a first glance, high acceptance rates might be a sign of a more professional driver, things aren't this black and white. According to driver Omar Zahran, the DoorDash system practically forces drivers to take low-stake orders to maintain their Top Dasher status (via Medium). This is because the inability to "Dash Now" might just kill a driver's business, as highlighted by Dasher Kevin Smith on Quora. "I'm in a city where trying to schedule dashes is nearly impossible. When I first started I relied on the "dash now" option. But now that my acceptance rate ... has dropped to 55% I kind of screwed myself."

To attract customers, it's important for DoorDash to have as many restaurants on its app as possible. In theory, this should also provide exposure for restaurants. However, the reality is not quite so rosy, with many restaurants unhappy about Dashers picking up orders. To a large extent, this is because DoorDash charges restaurants up to 30% per order for the privilege of appearing on its app (via NWA Online). In addition, some restaurants say that they never gave the delivery platform permission to post their menus. One Reddit user explained, "DoorDash delivers until they receive a cease and desist order. It's pretty much their business model ... The theory is that you will partner with them when you see your sales go up or at least won't care if they send in drivers."

Another reason for the disconnect between Dashers and restaurants is their different priorities. Dashers are usually thinking about time since their wages depend on the number of deliveries they complete. As such, they don't appreciate wait times at restaurants. They are also annoyed by the lack of consistency between restaurants, even if they belong to the same chain. McDonald's is a case in point, with some outlets demanding that Dashers go through the drive-thru and others that they ring a special orders doorbell. The drivers' frustration is often seen as a lack of professionalism by restaurant staff who are often also under pressure to complete orders (via Medium).

DoorDash believes in making the higher-ups put themselves in the shoes of their employees. The WeDash program does exactly this — it requires all employees, including DoorDash's CEO Tony Xu, to don the hat of a delivery driver at least once a month. All money generated through the program is donated to charity. "As the company grew, the founders wanted everyone to experience different parts of the product so we could get closer to all our audiences and understand how the product works," a DoorDash spokesperson told CNN Business.

Not everybody has been happy about the program, however. In December 2021, a DoorDash corporate employee who reported making $400,000 a year complained about WeDash on the anonymous employee platform Blind. Entitled "DoorDash making engineers deliver food," the post bemoaned the fact that the so-called engineer would have to hit the road, "I didn't sign up for this, there was nothing in the offer letter/job description about this." Luckily, other DoorDash employees disagreed in the comments to the post, "Most of my coworkers and I are excited. DD pays well and I get to better understand what I'm working on, and hopefully improve the experience for our Dashers" (via Business Insider).

DoorDash changed its payment policy in 2019 after paying $2.5 million to settle a lawsuit that accused the company of absconding with drivers' tips. The original payment model saw DoorDash paying its drivers a flat rate of $10 per delivery. This included a base rate of $1 and customer tips. If a customer didn't tip enough, DoorDash made up the difference. If a Dasher got a relatively large tip, however, DoorDash used the extra money to subsidise the hourly wage of its other drivers (via ShopFood).

Implemented in 2017, this payment structure worked until two articles — one in The New York Times and the other in NBC News — shed light on the practice. The revelation didn't go down well with customers who were upset that their tips didn't go directly to their delivery drivers. More specifically, they were enraged that their tips were used to subsidize the drivers' base pay, which they believed should have been covered by the company (via Business Insider). Since DoorDash changed its payment policy in 2019, drivers have been able to keep 100% of their tips (via Cnet).