DoorDash’s about-face on tipping shows customers have more clout than workers
latimes.com
latimes.com
Also, if their new system still has something like the "call option" to guarantee minimums it still seems like it's in everyone's best interest to not tip and get DoorDash paying as much as possible.
Not when regulation steps in. That is what labor law and regulation is for.
The "gig economy" was a tech industry attempt to sidestep labor law, and the law is finally catching up. And mind you, you don't have to outlaw how gig workers are currently treated as contractors everywhere to break these platforms; just in places large enough that without those markets, the platform is no longer barely sustainable (for example, 25% of Uber's bookings occur in just five cities: New York, Los Angeles, San Francisco, London, and São Paulo). It doesn't matter much for platforms if gig workers are still legal in say, Wyoming.
https://www.wired.com/story/california-lawmakers-move-protec... (Wired: California Lawmakers Move to Protect Gig-Economy Workers)
Why not? While brand recognition is valuable, it makes sense to operate in any jurisdiction in which you operate at a profit. At this point, all of the infrastructure to build the platform in the first place is a sunk cost, though if their total operating volume falls dramatically there maybe some work involved in turning down excess capacity to reduce ongoing costs.
It helps when government regulations exist to reduce employers' ability to find replacements. That's the fundamental conflict that employers can exploit: when they can appeal to each individual to work at cost to the advancement of the entire set of workers, the organization fails. Employers can then reduce pay and worsen working conditions to the poverty level.
A variety of things have reduced the effectiveness of labor organizers over the past few decades, but they were responsible for things like the 5-day, 40-hour workweek and safety regulations. The ability of the Internet to reach out to an even wider set of unskilled workers makes the job nearly impossible.
DoorDash being scammy doesn't give the customer permission to ignore a social norm. The customer should still tip, just do it in cash outside of the app. It is a little less convenient, but it is better to be inconvenienced than to be an asshole.
https://i.redd.it/jrusids6bggy.png
> I'm not giving my tip dollers to a company that doesn't support working people
Oh! But PJ's screws that over by trying to call the employee an independent contractor. Oh yea, they try the same crap as Uber and Lyft and the other rideshare and delivery companies. In fact, they're practically the modern pioneers of the new 'independent contractor' scam. these 'tech companies' are just copying what the pizza industry has been doing for ages.
All you see as a Dasher is that there is a new delivery for a 'guaranteed minimum' of $10 which in this world means that you will almost never receive anything other than $10. You take the job, deliver the food, and find out after that $3 of that was tip. You take another $10 job and find out that $0 of that was tip.
In this world there is zero expectation of a tip because almost no one tips outside the app and in-app tips are worthless. The reason tipping is expected is because ...it's expected. You're an asshole at a restaurant if you don't tip because ~15% is the baseline, in DD's world the baseline is 0%.
I'm not exactly sure why you're trying to guilt yourself into paying more for the exact same service to a person that is not expecting anything extra. You're doing the equivalent of tipping the cashier at the grocery store.
Meanwhile, a reasonable complaint from staff could be seen as an uprising of the working class.
You can also think of it this way: when 15% of your staff leave, you at least don't have to pay them. You get a 100% discount on 15% of your old headcount. Maybe you take some of those savings to bribe other staff to pick up the slack before the replacements come in.
If 15% of your customers leave, that's just money gone and you're stuck holding the bag on everything from inventory to leases, to salaries, and your own idle time.
Edit: should throw in I actually submitted this idea for Startup School and in the early MVP ideation/building phase.
Every month, the app collects the data from its users and produces a report: "Dear Nestle, this month you lost $X of revenue on account of people boycotting you because of this or that."
I think it's important to send some kind of negative feedback to companies.
Maybe there are some ideas in there for you. I really wished it got completed.
If there are no customers there is no business. It doesn't matter how many 'angel investors' you have in a business or other nonsense like that. If producers try to jack up prices and nobody feels like paying them then it's the producers that go bankrupt, not the customers. Similarly if producers piss of their customers so they leave then it's the producers that lose jobs, not the customers.
This is the democratizing effect of capitalism. Everybody works for a living and everybody is somebody's customer. In a total capitalist society you must serve to be able to eat and when you eat must be served.
Of course the world is not a perfect place and there are a multitude of ways that this power dynamic gets turned on it's head.
One of the ways is people being convinced that they are passive "consumers" who believe they are helpless to 'capitalists' and apathetically volunteer themselves to be victims... Like people who go out and put 600 dollars on their credit cards on a new smart phone only to complain and moan on that smart phone on how they are being spied on and so on and so forth... while all the while paying interest to the bank for joy of financing their own privacy violation.
It really helps when a company makes a choice between them and their competitors even easier.
Reading that Door Dash article was like reading The Jungle by Upton Sinclair, which exposed the realities of working in the meat packing plants in Chicago at the turn of the century and led to reforms. Tech only makes it easier to abuse low end labor, its good to see that muckraking is still a viable form of journalism.
IIRC, it's true that when restaurants shift to a tipless system that (a) charges the true price up front and (b) distributes the revenue more evenly to both front of house and back of house, servers end up making less.
It seemed to be the most straightforward thing to do is to charge the customer the "guaranteed minimum" that they're promising to pay the delivery person, then add tip on top. The higher sticker price would probably drop demand, but the people who do deliver would earn more on average. It's also possible, though, that people will simply stop tipping, leading to a small drop in average revenue per delivery.
I wish we got rid of tipping for these situations altogether, but I realize it's useful as a price discrimination mechanism.
Unfortunately stuff like this happens at many local restaurants. The jobs are allowed to pay below minimum wage and let the tips pay the employee. Some places abuse that even further.
So, glad they are doing the right thing I guess, but I'm not giving them any points for waiting until they had no other option.
Meanwhile a guy who stole 23 cellphones in an armed robbery was sentenced to 17 years is prison the other day: https://chicago.suntimes.com/crime/2019/7/23/20707907/aries-...
Now armed robbery is bad, no doubt. If I had heard of this fellow getting 17 months in prison for it I probably wouldn't have thought twice. But 17 years is ridiculous, even if he will be out in 8 with good behavior. Meanwhile examples like Doordash show it's basically legal to steal from poor people, and Bernie Madoff, who stole $20 billion dollars is petitioning for clemency because he's old and what the hell, it was just money.
Whataboutism is never the right choice. Stay focused. Fight the good fight. Don't let them (or yourself) distract you. Stay focused comrade!
But violent crime is another thing entirely. The payoff matrix is totally different and hinges on the neutralization effect. And the damage done by the crime can't be reversed, unlike pure monetary losses. You can pay back stolen wages. You can't un-kill a murder victim or un-rape a woman.
Anyone who's ready to point a gun at people and engage a dangerous police chase needs to be of the street for a while. Ideally, until he ages enough for his hormone balance to calm him down a notch.
Also note that this dude likely has a record already. If that's the case, letting him out basically means signing up not innocent citizens to be terrorized and possibly killed in his inevitable future crimes. Perhaps you're okay with that risk of you think you won't be the one getting shot. If you knew you would be his next victim, you'd be asking for more than 17 years.
https://en.wikipedia.org/wiki/Tipped_wage
I was shocked when I realized why the US comparatively tips so well, is because it's entirely likely you're contributing more to your server's income, than the restaurant you've just bought the meal from.
They say politics is like a pendulum and it seems like we are all the way on the right and it should start going back to the left any day now.
https://www.bbc.co.uk/news/science-environment-48964736 The future is bleak and the only alternative is a paradigm shift, I don't think the older generation is coming around soon on this
'Old' people are not the problem and you will be quite surprised at how many 'young' people have problematic policy views as well.
And the lack of shame at wishing for people's death is alarming and repugnant.
https://news.gallup.com/poll/234314/global-warming-age-gap-y...
Maybe it would have been better to say, the younger generation needs to be better represented by politicians as they are the ones who will be suffering. There is only one way this will happen, I am not asking for anything other then nature taking its course. Maybe I was somewhat crass, but wanting a culture shift in a very natural way is neither alarming nor repugnant. If older generations didn't go away, we would still have slaves and society would be run by kings, and countless other out dated policies. The baby boomer generation is larger then most so they have more votes and there out dated views are keeping us from being the best we could be.
Your disrespect for their humanity is indeed alarming and repugnant, as well as just plain misguided.
If we were to accept your claim that a "generation" can be to blame for something, today's politics and policy fall squarely on the younger ones based on their numbers.
I don't understand this sentence (probably for cultural reasons) - what does 'whole' mean? Why do they need to be 'made whole' when they don't earn a tip?
It's referring to their practice of boosting your per-delivery earnings to $6.85 if the customer does not tip you enough to meet that minimum payout.
A term you'll often hear wrt paying back creditors/investors/options, making them whole.
Both consumers and Dashers assumed that the equation was instead X promised dollars PLUS Y tip dollars.
(e.g. A dasher is promised 5 dollars for a delivery. DD assumes that the customer will pay 4 dollars in tip, meaning the cost for DD should be 1 dollar. If the customer tips 2 dollars, they will "make whole" the Dasher by paying them 3 dollars in addition to the tip. This is all horse shit and people were pissed by this deception.)
Also, obligatory Reservoir Dogs tipping scene (warning, NSFW language): https://youtu.be/V4sbYy0WdGQ
Even in this Reservoir Dogs scene, the guy who brings forward the logical arguments is presented as a self-serving asshole who doesn't want to pay tips ( sum is ridiculously small - just 1$; and he wants to tip zero, despite ok service; the rule in most of the world is that you tip something - but far less than 20% - unless you had really bad service). So this entire sketch serves as a way to mock even the logical arguments against the tipping culture in US (what about the McDonalds workers? Is their work any easier? And why - WHY IN THE WORLD - are the restaurants allowed to dip into funds that are specifically designated as "tip, for the waiter"? At the very least, pay them minimum wage PLUS all the tips that they get - there shouldn't even exist a legal option to not do that!)
https://www.vox.com/new-money/2017/4/29/15471634/american-ai...
>American Airlines agreed this week to do something nice for its employees and arguably foresighted for its business by giving flight attendants and pilots a preemptive raise, in order to close a gap that had opened up between their compensation and the compensation paid by rival airlines Delta and United.
>Wall Street freaked out, sending American shares plummeting. After all, this is capitalism and the capital owners are supposed to reap the rewards of business success.
They didn't really 'take wages' from any of the workers. All of the money coming in is owned by DoorDash. They are now choosing to give a portion of that to the drivers (the tips).
DoorDash doesn't have a monopoly on gig jobs. You can choose to do something else if you don't feel the pay is fair. The reason they didn't really care about the drivers' opinions is because it obviously didn't stop many from driving.