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DoorDash (YC S13) reveals how much it relies on customer tips to pay its workers
- tareqak 8y agoThe company is also in the process of raising $500 million [0]. [0] https://www.wsj.com/articles/delivery-startup-doordash-reaches-for-over-6-billion-valuation-in-new-funding-11549920541 https://www.wsj.com/articles/delivery-startup-doordash-reach...
- byset 8y ago"In about 15% of cases, customers leave no tip, and DoorDash pays the entire amount, the company tells us. (The default tip is usually set to 15% the app.) ... In the next roughly 45% of cases, customers contribute less than half the money required to meet the minimum quoted fee–called the 'guaranteed amount'–leaving DoorDash to chip in the majority of the fee." So under their model, if you tip well, you're subsidizing people who don't tip at all.
- luckylion 8y ago> So under their model, if you tip well, you're subsidizing people who don't tip at all. Under their model, if you tip well, they can pay less, you're subsidizing the owners, not other customers.