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DoorDash Adds Payment Options For Gig Economy Drivers

 |  June 28, 2023

DoorDash will now let its gig workers choose to be hourly workers.

The aggregator will let drivers choose to earn a minimum hourly rate, to use the existing method in which they are paid per offer, and to switch from one to the other, DoorDash said in a Wednesday (June 28) press release.

“At the start of every dash where Earn by Time is available, Dashers can choose which earning mode they want to use and at any time, they can end their dash and start a new one in a different mode when available,” DoorDash said in the release. “With these two earning modes, Dashers today have unprecedented choice, flexibility and control in how they dash.”

PYMNTS research has found that 76% of gig workers live paycheck to paycheck, and 30% said they would leave the gig work industry due to low or unpredictable earnings.

Read more: EU States Introduce Regulations That Protect Gig Economy Workers

Without some kind of change to their gig workers’ pay structure, restaurant aggregators struggle to hold on to their network of couriers, according to “Living Paycheck to Paycheck: Real-Time Payments for Financial Health,” the June edition of the “Real-Time Payments Tracker®,” a PYMNTS and The Clearing House collaboration.

The new hourly minimum rate offered by DoorDash will apply to the period between the driver’s acceptance of an offer and their completion of the delivery, according to the press release.

Together with the new hourly pay option, DoorDash has updated its platform to include three other features for drivers, the release said. These include features that send drivers offers within a zone they have selected to reduce downtime, that enable drivers to share their location in real time with as many as five trusted contacts, and that let customers add a tip or increase their tip via the app as many as 30 days after the delivery.

“While customers can still tip at checkout like they’ve become accustomed to, this option expands the in-app tipping moments and ensures that regardless of a customer’s unique tipping preferences and habits, they’re able to easily reward Dashers for their great service,” DoorDash said in the release. “With this new feature, we’re also implementing new nudges and reminders to encourage customers to tip after delivery.”