Xu announced the change in a tweet on Tuesday night. DoorDash had previously used tips to make up the minimum payment to couriers from deliveries. Also on Wednesday, a Madrid court ruled that Deliveroo couriers are employees, not freelancers, making them entitled to benefits and formal contracts. (The Verge, Reuters)
Talking point: DoorDash is the latest tech company to change policy following employee concerns. In this case, DoorDash has been facing months of pressure from its employees and concerns from others in the tech industry. The response is unusual for a firm in the gig-economy space, as worker demands to other delivery firms have largely gone unfulfilled. In Canada, Toronto’s Foodora couriers are seeking to unionize, citing problems like their lack of benefits. Foodora did not directly address the issue. But the Berlin-based firm pulled out of Australia entirely in 2018, after the nation’s fair-work ombudsman took it to court alleging several Foodora couriers were classified as independent contractors while doing the work of full-time employees.