Customers have long been asked to tip the people who deliver their take-out or groceries. Now, that pressure is even greater, thanks in part to "tip nudging."
At the center of the latest tipping debate is DoorDash. In late June, DoorDash rolled out a new app feature that allows delivery customers to increase a tip for drivers up to 30 days after a food delivery is completed. Customers that have not tipped will be prodded to do so. These nudging notifications are becoming more common — Uber Eats, Instacart, and Starbucks have similar messages for customers.
"These new nudges and reminders will encourage customers to tip and show their appreciation after their Dasher delivers an order," DoorDash executive Austin Haugen said during a media event in late June.
"Consumers who are waiting to see how the Dasher provides service … now have a way to actually reward Dashers," Rajat Shroff, DoorDash's head of product & design, said during the event.
Some DoorDash drivers say the new nudge might bother customers. But for many drivers, tips have become increasingly important.
"I think it would be annoying to 80% of customers," said Heather Taylor, who drives in Corpus Christi, Texas. But she added, it could improve her income.
Base pay for DoorDash orders is as low as $2, making tips a key source of income for workers
DoorDash's tip nudges come as some delivery workers have aggressively attempted to increase tips. Some delivery workers have tried to increase their gratuity by asking DoorDash customers for higher tips mid-delivery. In other cases, Dashers have shamed customers over low tips. DoorDash prohibits these sorts of actions.
DoorDash's nudges will appear for customers who have not already added a tip to their order. "Customers get a maximum of one nudge per order that does not include a tip," the company said in a statement. "This is not unique to DoorDash and is common practice across gig platforms."
Uber and Instacart are a bit more intrusive with their tip nudging.
"We've rolled out tipping prompts to encourage customers to consider increasing their tip anytime they rate a shopper five stars," Instacart said. "The prompts also encourage customers to recognize their shopper's hard work by leaving a tip if they initially choose not to leave one."
Uber Eats told Insider it has "invested heavily into improving the tipping experience for drivers and couriers" over the last two years. That includes adding tipping prompts throughout the user experience, including encouraging tips during inclement weather.
Uber Eats said it has made app improvements to improve tipping behavior, including encouraging customers to tip when placing the order, during the order, and after the order.
As a result, the average food delivery tip has increased by 20% from 2020 to 2022, Uber Eats told Insider.
DoorDash told Insider that base pay "generally ranges from $2 to $10 per order, depending on various factors including the estimated duration, distance, and desirability of the order. With tips and base pay, DoorDash said on average, Dashers make $25 per hour on active deliveries.
"Dashers on our platform are earning more today than ever before on delivery and have earned more per active hour every year for the past four years," DoorDash told Insider.
Many gig delivery workers make below minimum wage and say their earnings have fallen since the height of the pandemic
A 2020 study found many gig delivery workers are struggling to make minimum wage. The survey of gig workers from the Economic Policy Institute found that about 14% of gig workers made less than the federal minimum wage, and 29% earned less than their state's minimum wage. The survey was conducted in 2020, a banner year for gig workers due to demand for delivery early in the pandemic.
The number of people working gig jobs grew sharply during the pandemic. But since then, demand for delivery has declined, particularly in grocery. That leaves fewer orders for more workers.
Sergio Avedian, a spokesman for The Rideshare Guy blog who delivers about 20 hours a week in Los Angeles, said his base pay ranges on DoorDash or Uber Eats from $1.50 to $3 per order — 50% less than the height of the pandemic when earnings surged due to demand. Other drivers speaking to Insider quoted similar declining base pay.
"When base pay is so low, we have to look for high-tip, low-mileage orders," he said. "We are literally working for tips."
Are you a delivery driver with insight to share? Got a tip? Contact this reporter via email at nluna@insider.com or text at 714-269-8873.
