Grubhub sets default tip to $0
arstechnica.com
arstechnica.com
If you don't live in California, you may not know - they added a $1.50 fee to every order, in addition to all the existing service fees and delivery fees, which often add up to 20-30% of the order. (Also by the way, uber and grubhub already artificially raise the prices of items on the menu and keep the difference, and restaurants can't do anything to stop it). They can blame it all on Prop 22 even though they spent millions to pass it.
Now obviously people are paying all these fees, so it appears that drivers are being paid a lot, so no need to tip. But most drivers don't even qualify for the money! We are paying money on orders that probably won't even go to our own driver.
Personally I've decided to stop using these food delivery apps. I can't stop using Uber, but I can pick up my own food. It is depressing that so many delivery drivers didn't understand what they were voting for and did nothing to stop this
I found the paternalism of AB5 to be a little bit problematic. It really assumed that the drivers are too stupid to do their own accounting and figure out if they are making money or not. Pretty sure most drivers wouldn't be driving for $9.21 if a job at the local ice cream parlor could get them almost double on the spot. Yet you still see folks driving 30 hrs per week for years.
Secondarily, it indeed assumes that the drivers have the skill to understand depreciation of the vehicle, cost of repairs, etc., or expected costs of healthcare over time, which, bluntly, I’d be surprised if most people on this forum could calculate correctly enough. Alternatively, it’s possible that drivers are knowingly mortgaging the car to cover short term needs - in other words, that the math doesn’t pen out and yet people are still engaging because they’re under duress.
Finally, it assumes absent state intervention that there’s any kind of parity in negotiation between the drivers and the company, or any way for them to affect what is a transparently lopsided power dynamic.
Here is the specific language:
After the effective date of this chapter, the Legislature may amend this chapter by a statute passed in each house of the Legislature by rollcall vote entered into the journal, seven-eighths of the membership concurring, provided that the statute is consistent with, and furthers the purpose of, this chapter.
This means two things:
1) To make a change that is consistent with the purpose of prop 22 (that is to say, that proponents of prop 22 would agree to), an 7/8 congress majority is required. This is highly unusual, and not a coincidence: to achieve such a majority requires getting the California GOP on board. California Republicans are mostly irrelevant at the state level, but they have endorsed prop 22, and this is their reward: a permanent veto over any incremental changes to a crucial section of California labor law.
2) To make a change that is inconsistent with the purpose of prop 22 (for example to reverse it), a new ballot measure must be adopted. Although that is technically not impossible, in practice it may as well be. Uber and Lyft spent $80m on this ballot measure, and could easily double that if required. Their natural opponents, unions, could barely raise $5m the first time around. They simply don’t have pockets deep enough to compete.
Whether you supported or opposed AB5, it should be common sense that California’s democratically elected congress should have authoroty over California law. Prop 22 establishes a new reality where that is no longer the case: for $80m dollars, you can essentially buy yourself a permanent exemption. That is incredibly dangerous.
Lawmakers should be creating laws in the public interest, it's ridiculous that a brand new law like AB5 lacked so much public support that it could be immediately overturned. It's a pretty clear demonstration of legislative incompetence. They knew it was a bad law but rushed it through anyway.
Before anyone suggests that a tip is required in these instances, I'll preemptively remind you that Grubhub already takes AT LEAST 30% from the provider. A default tip by the consumer of 20% would suggest that their delivery service was worth MORE than the provider's food.
Here is a restaurant showing GrubHub fees (not including tips) constituting more than 60% of of the take.
https://www.eater.com/2020/5/1/21243966/giuseppe-badalamenti...
If drivers need more wages they should get them from Grubhub's already overly generous cut of the pie.
If someone appreciates a prompt delivery or other aspect of the provided service then by all means, provide a tip but that should be the carrot, not the status quo. If it is "expected" then Grubhub should just lump it onto their already outrageous fee structure.
Lack of proper pay for service workers in America that has resulted in our out of control tipping culture has always made me a little sick.
I encourage you to go do something about the system, but until then, advocating for hurting delivery workers because you don't like the system is a bad approach.
So, we're acknowledging... capitalism? Getting rid of tipping isn't the answer. Getting rid of capitalism is.
Unless by "get rid" you mean "completely eradicate", which is not feasible under any system.
So long as two, consenting parties—who are never symmetrically informed—engage in nonbroadcast (“private”) transactions, you have capitalism.
__________
ᵃ By “natural” I only mean determined.
As for private exchange, let's just not have private property, shall we?
If such notions as private property emerge, I reckon it’s because the benefits of the idea are greater than the blood costs of defense.
It’s wishful thinking descendants of families who died over, negotiated, settled and established a history in a particular terrain—no matter how unfairly acquired—will relinquish it without force.
What makes the family homestead valuable are the costs incurred to keep it.
I dig a deep hole somewhere. I incurred significant costs to do so. Is that hole now valuable?
What stops you from attempting that now? Consequences. You're assuming you would not also be putting your life at risk attempting to do so? (I'm not talking about state enforcement or punishment. We are all free to protect ourselves.)
As for your "deep hole", note I said the homestead is valuable because of the costs incurred to _keep_ it.
Organize this movement, give workers fair warning before acting, and then act – and then you can say you were being honest and principled.
Stiff an individual worker as a grumpy, self-righteous individual consumer, and all you are doing is exploiting a tacit agreement and risking someone’s ability to pay their bills. Someone who doesn’t have that many options for employment, otherwise they wouldn’t be working in such a risky arrangement to begin with.
What Grubhub is doing here is a calculated, likely-temporary cash grab that they know for a fact will come at the expense of the drivers. By the time enough outrage builds that they have to change the UX again, they’ll be that much closer to balancing their own books.
https://apps.apple.com/us/app/roc-national-diners-guide/id57...
https://play.google.com/store/apps/details?id=app.rocunited....
Unfortunately, the way many restaurants choose to manifest this is via a "mandatory 18% service charge" that is not reflected in the prices themselves. I hate this. I wish restaurants would just publish a menu that has the "all-in" price, with the "service charge" and taxes included. Maybe the market will reject this, but I suspect that this fear is not fully founded.
(It's takeout only.)
Their banh mi sandwiches are yummy, and the price you see is the price you pay.
https://www.eater.com/21398973/restaurant-no-tipping-movemen...
Customers tipping drivers in cash would seem to be a way to ensure they get an intended tip directly.
This nonsense needs to stop. All prices should include all the fees so customers can comparison shop.
Worst of all at some grocery stores I've come across POS devices that ask for a tip. It's annoying. These need to be outlawed.
I'm all for drivers and restaurant workers making more money but mandatory "tip" and various hidden fees is not the way to go.