Let’s say you want to move most of the compensation to tipping. This gives the buyer more control over how much they pay, and drivers may get more money if they do extra.

So you change your model to be less base pay and more tips. In door dash’s case, their base pay is $1.

But now you have to worry about the person that stiffs the tip and leaves nothing. Can you feel comfortable paying the driver a dollar for that trip?

Well.. no. So you say you’ll guarantee a minimum per order. If anything the people in the room making this thought they were doing an extra nice thing by adding this guarantee.

The thing is, drivers asked for more of their pay to come from tipping. Most nonapp delivery drivers are paid on a heavy tipping model. If it was messaged drivers get $1 plus tips would people be ok with that?

I used to work in this industry but not these companies. Actual comp doesn’t change on much average through most of these schemes, though there are outliers. Which is to say, they’re all underpaid, even at the “better” ones, as is your dominoes driver.