100% Of Your Tip Goes To Your Driver.....Sort Of!

Updated: Feb 25, 2019

Customers might be surprised to learn that despite claims that all of your tip goes to the driver, some delivery companies are using that tip to pay drivers.

The problem started with Instacart. Most delivery companies promise their drivers a minimum pay rate per delivery. It was a revealed last week that Instacart was using part of the drivers tip money to fund this minimum rate. So while "technically" 100% of your tip was going to the driver, the company was actually reducing other payments to the driver. Following a spate of negative publicity, Instacart announced that it is revising this policy.

However, some other companies including DoorDash have a similar policy in place, and as of the time of writing are keeping that policy. It remains to be seen if that will last given continued negative publicity and push back from drivers and customers, who feel any tip they provide should be fully benefiting the driver. This all plays in to the bigger picture and issue of minimum wages and minimum compensation for the ever growing gig economy.

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