DoorDashers want CEO Tony Xu to ‘step up’ and end ‘woefully underpaid’ job
Earlier this month, DoorDash (DASH) drivers in California protested on social media outside CEO Tony Xu’s home, in a bid to push for more transparency on tips and higher wages.
About 50 delivery app drivers, members of rights groups We Drive Progress and Gig Workers Rising, traveled by caravan past Xu’s house in the Pacific Heights neighborhood of San Francisco.
The incident highlighted the growing gap between wealthy Silicon Valley startup executives and working-class entrepreneurs whose livelihoods now depend on ubiquitous delivery apps.
“It has to escalate. He has to find a way not to underpay us miserably and show that he appreciates the people involved in this operation that made him rich, ”Rondu Gnatt, Dasher and organizer of Gig Workers Rising, told Yahoo Finance in a recent interview.
The protest was prompted by a recent California Superior Court ruling that declared the state’s Proposition 22 unconstitutional. Voters approved it last year after app-based companies spent hundreds of millions to avoid classifying drivers as full-time workers.
The law has made all workers, who get jobs at app-based companies like DoorDash, Uber, and Lyft, classified as independent contractors rather than employees.
“The Dasher’s concerns and comments are always important to us, and we will continue to hear their voices and engage our community directly,” a DoorDash spokesperson said in a statement – but added that the protesters ” do not speak for the 91% of Californian Dasher who want to remain independent entrepreneurs or the millions of Californian voters who overwhelmingly supported Proposition 22. “
She added: “The reality is that the passage of Prop 22 resolved in law many of the concerns raised today about its historic benefits and protections: workers earn 120% of their local minimum wage per working hour more. 100% of their tips. , receive free PPE and gain access to health funds.
“It’s not a numbers game”
However, COVID-19 and recent extreme weather conditions have highlighted the plight of gig workers who have been seen as essential employees, providing services to more upscale consumers who have stayed at home during the pandemic.
“It’s not a numbers game,” Gnatt told Yahoo Finance. “You can’t treat people like data points, we matter, customers matter, restaurants matter. “
Meanwhile, some drivers say they have had to deal with the pressure of driving in dangerous conditions. More recently, delivery drivers in New York City during Hurricane Ida as an example of some of the conditions that drivers feel pressured to accept.
After DoorDash went public in December and demand for app-based delivery skyrocketed in the wake of COVID-19, it helped make Xu one of the.
Things went wrong with concert workers, who demanded that the platform show them their tips before agreeing to deliver an order. They are also asking DoorDash to provide 120% of the minimum wage, stop unfair deactivations and provide free personal protective equipment, as well as adequate wages for disinfecting cars and equipment.
DoorDash drivers say they want to get paid for the time they’re active, for example, when they’re actively driving to pick up or drop off food orders rather than when they’re in line waiting for concerts.
“It should depend on time and distance, but they’ve predetermined what you’re going to get paid for. So like all the factors like traffic, the restaurant not having the food ready on time, all of this should cost you a loss, ”Gnatt said.
In response, DoorDash defined its practices and said base salary is calculated based on estimated time, distance, and desirability of an order.
Meanwhile, Dashers can expect to earn a base salary of between $ 2 and $ 10 and more, depending. But some drivers say they got as little as $ 3 an hour.
“They call us entrepreneurs and they say we have a choice. We only have the choice of saying yes or no to an order, ”Gnatt replied. “You want $ 3 or you don’t want anything.”
Workers also asked how much they would earn in tips before accepting or rejecting an order.
At the same time, Dashers can keep 100% of their tips, but the app only shows a guaranteed minimum amount and does not tell them the customer’s tip, unless the driver accepts the order.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter: @daniromerotv
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