DoorDash said it will make sweeping changes to its compensation model, paying drivers hourly wages and allowing them to shift between two newly introduced earning options compensating workers based on either time or delivery offer.
The app-based food delivery service announced Wednesday that, to celebrate the 10th anniversary of its founding, the company will make several changes to its business model, including giving Dashers, the workers who make deliveries, a choice in how they earn their wages: earn by time or earn per offer.
"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 its announcement. "With these two earning modes, Dashers today have unprecedented choice, flexibility and control in how they dash."
In the past, drivers have been earning a base pay of between $2 and $10 per delivery based on "the estimated duration, distance and desirability of the order," according to the company's website.
But under the new program, Dashers will earn an hourly rate calculated so that they will "earn roughly the same, on average" under either earning option, earning between $10 and $19.50, the company told Law360. …
Employer-side Epstein Becker Green attorney Paul DeCamp called DoorDash's new approach "creative" in a statement to Law360 Thursday but added it is too early to say whether it will help litigation against the company.
"Ultimately, anything that increases choices available to workers is potentially positive," DeCamp said. "Time will tell whether this move ends up falling into the category of no good deed going unpunished, as it could factor into disputes about worker classification."