DoorDash is testing a new popup that warns customers who don’t tip that their order may take longer to arrive.
DoorDash drivers, which the company calls Dashers, are free to choose which orders they deliver, and are more likely to accept ones that include a tip. Orders without tips can take longer to get selected.
In a post on its website this week, DoorDash contended that tipping helps everyone involved, because it puts more money in drivers’ pockets and improves the delivery experience for customers, who get their food faster.
Dashers are considered independent contractors and are therefore not guaranteed a set hourly wage. As such, tips are a key part of their earnings. They make a base rate of $2 to $10 per delivery based on things like time and distance. They can also earn more through special promotions from DoorDash. But the tip is often what makes an order worth it or not.
The nudge from DoorDash comes at a touchy time for restaurant consumers. They are facing inflation on the menu, the spread of tipping into more transactions, and the rise of service fees as restaurants try to manage their own costs.
On the other hand, it’s customary to tip delivery drivers. And food delivery is almost always a discretionary occasion.
And while customers might not appreciate the extra push from DoorDash right now, it appears to be working: The company said there has been a “meaningful decrease” in no-tip orders since it launched the test.
The tipping reminder is being randomly tested across the U.S., and the company is still analyzing the results before deciding whether to make it permanent, it said.
DoorDash is flying high after another strong quarter in which total orders rose 24% and gross order volume rose 27% to a record $16.8 billion. Its stock price rose nearly 30% this week.
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