Wednesday, August 7, 2019

Proof that a Doordash Driver Will Earn More by Actually Receiving Their Tips

In this article, I am going to prove that Doordash drivers are going to be so much better off when this current and crappy pay model that Doordash came out with in September of 2017 is done away with. Even though a small percentage of dashers have voiced that they would like Doordash to keep things the way they are, I believe that these people do not understand that they can make so much more money by receiving a flat fee from Doordash plus the customer tip.


Since Doordash introduced a new pay model in September of 2017, this has been the confused look of all their dashers

 

There was a time, pre-September of 2017, when us dashers used to receive a flat fee and the full customer tip. In most markets it was $5 plus the customer tip. I heard that in some markets it was $6 plus the customer tip, but most markets received a flat $5 for each delivery. Us old-school dashers used to make so much more money than what we have been earning since the September, 2017 change in the pay model.




Dashers that support subsidized tipping are confused


Many dashers that have only delivered under this pay model scheme have not experienced what it is to receive your full tips with Doordash. Sure, many of these people would say that they enjoy seeing exactly what they are going to earn for a delivery whether the customer tips or not. They love the Doordash guarantee! They love the fact that Doordash tells them that they will put in a pay boost to make sure that a decent amount is paid for the delivery. In other words, Doordash will take care of them when the cheapskate tippers don't. Many of these dashers believe that too many customers don't tip and that they are going to make less now, but they are entirely wrong.

Some of the drivers that support this corrupt Doordash pay model will say that they have driven for Uber Eats, Postmates or some other competing company and mock those companies by saying that they earned $3 or $4 for a delivery. They will have the opinion that they don't want Doordash paying crappy for calls like those other companies. They will complain about the amount of  customers that don't tip, but as somebody that has been in this game for many years, I will tell you that delivery drivers are so much better off by receiving their actual tips. It really surprises me how Doordash has brain-washed some dashers in to believing that this controversial pay model is good for them.









An example to prove that dashers earn more when actually receiving their tips


I'm going to give an example here of how receiving tips on top of pay is so much better than having Doordash subsidize tips in to a driver's guaranteed pay. I am going to give the easiest example possible. We are going to compare $5 per delivery and the full customer tip verses the current pay model that subsidizes customer tips.

I want to mention that I am using the very old pay model example here that most dashers are hoping Doordash will go back to. Receiving $5 per delivery and the customer tip was the normal thing back then. Even though Doordash has said that they are getting rid of their current pay model scheme, we do not know exactly what the new pay model will be. As I've said, we are all hoping for the $5 plus tip to come back, but we shall see. There is no guarantee that they will go back to this exact payment model, but they should, and we will use it as an example here.



In this example, I am going to use a dasher that works in a market that pays crap. Basically, every call that they get pays $5.50. There are many parts in Southern California like this, and if they are reading this they know who they are. I do not want everybody to think all of Southern California pays crap, because some regions pay very well, but those that work in the $5.50 regions know who they are. It is not just a once in a while $5.50 call. Every single call is $5.50!

In this made up example, every call guarantees them $5.50. We are going to see how much the Doordash driver would make with the pay model scheme that has been going on for the past few years and what the driver would make if things went back to the old pay model of $5 plus customer's tip. In the example here, we are also not going to include any super tippers. We are going to assume that those that tipped left a very small tip. Trust me when I say that in real life many customers tip much more, but for the sake of the example we are going to use only small tippers. One last thing here is that we are going to use the 15 percent of non-tippers in the example. Doordash recently shared publicly the amount of their customers that did not tip anything at all, and that number was 15 percent.

Current pay model scheme earnings in red - If dasher earns $5 plus tip earnings in blue

Call #1 - Customer tips $0   | $5.50   | $5.00                   
Call #2 - Customer tips $1   | $5.50   | $6.00
Call #3 - Customer tips $2   | $5.50   | $7.00
Call #4 - Customer tips $3   | $5.50   | $8.00
Call #5 - Customer tips $1   | $5.50   | $6.00
Call #6 - Customer tips $2   | $5.50   | $7.00
Call #7 - Customer tips $3   | $5.50   | $8.00
Call #8 - Customer tips $1   | $5.50   | $6.00
Call #9 - Customer tips $2   | $5.50   | $7.00
Call #10 - Customer tips $0 | $5.50   | $5.00
Call #11 - Customer tips $3 | $5.50   | $8.00
Call #12 - Customer tips $1 | $5.50   | $6.00
Call #13 - Customer tips $2 | $5.50   | $7.00
Call #14 - Customer tips $3 | $5.50   | $8.00
Call #15 - Customer tips $1 | $5.50   | $6.00
Call #16 - Customer tips $2 | $5.50   | $7.00
Call #17 - Customer tips $3 | $5.50   | $8.00
Call #18 - Customer tips $1 | $5.50   | $6.00
Call #19 - Customer tips $2 | $5.50   | $7.00
Call #20 - Customer tips $0 | $5.50   | $5.00

Total Earnings -                   | $110    | $133

Dashers earn more without subsidized tipping


As you can see, this Doordash driver would earn more if they received their customer's tips. Sure, there are three calls (15 percent of orders) when the dasher earns more when Doordash subsidizes the tips, but when you look at the overall picture you will see why Doordash schemed up this pay model.

The dasher here earned $23 more for the day by receiving their full tips. If this was a full-time dasher that worked 6 days a week, we are talking about a $138 difference for the week. If we go even further it is a $552 difference for the month. This is a lot of money we are talking about, and this is only one dasher. With the current pay model scam, that $552 that the dasher should have in their bank account would instead go in Doordashs bank account. Do you understand why this has been the preferred pay model of Doordash? Do you understand why Doordash introduced this pay model in September of 2017?


FreeTaxUSA Box 300x250

 

If a dasher is still convinced that they are better off with their tips being subsidized, their defense may be that their area does not pay $5.50 for every call. Instead, these dashers earn $7, $8, $9, $10 and sometimes even more than that per call. They may feel like they are going to earn less when this pay model scheme is over. They may cry out that they will earn less because customers wont tip enough.

I myself work in an area where Doordash pays decent. There is very rarely a $5.50 call in my area. Once in a while there is, but most calls pay $7 to $10. I am going to put together another post where I am going to share my earnings with my readers. I am going to show you all exactly what I earn for my last 50 calls. I am going to show you an example just like I did above, but it is going to be a real one based off of my real earnings. I should be doing this within the next three days. If that post has already been done, you will see the link right below here. If there is no link below, stay tuned.

Here is the link to my real life earnings. Sorry it took over a week to post:

My real life Doordash earnings prove that dashers are better off receiving their tips


No comments:

Post a Comment