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DoorDash and Amazon Won't Change Tipping Policy After Instacart Controversy - Slashdot

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An anonymous reader quotes a report from Forbes: The tipping controversy that prompted Instacart to reverse a compensation plan to its contract workers isn't likely to go away: Rivals DoorDash and Amazon Flex are continuing to adjust driver pay based on how much they get tipped, saying doing so ensures a minimum payout. The practice, which has its roots in the way brick-and-mortar restaurants pay waitstaff, has been adapted to suit the needs of app-based delivery companies. The difference is that gig-economy workers are independent contractors, and so aren't protected by the minimum wage laws. Instacart, a $7.6 billion grocery delivery company, made a change in October 2018 that workers would receive at least $10 per delivery order. Customers and shoppers didn't realize that the tips were counting towards that minimum instead of being a bonus on top. So if someone tipped more, Instacart effectively had to pay less. That's how one Instacart delivery driver ended up with...(continued)
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