Knowing which apps subsidize your base pay with tips is incredibly important to maximize your earnings. In this article we’ll review a few of the delivery services on the market, and how they compensate workers with tips.
You would think that when you receive a tip that you get to keep the entire amount, similar to when you give a few bucks to a delivery driver, but that isn’t the case with some delivery services. DoorDash for example use to subsidize workers base pay with tips, so if they guarantee a base pay of $5 and you tip $3, then DoorDash only pays out an additional $2 to hit the base pay of $5. Luckily after intense backlash, the CEO, Tony Xu, announced they would no longer do this.
Postmates has confirmed to other publications that it does not use tips to subsidize workers’ pay.
Grubhub & Seamless
Similar to Postmates, Grubhub and Seamless both do not subsidize workers’ pay with tips. The entire tip amount goes to the delivery driver. The GrubHub app even shows a suggested tip amount based on the entire order, not just the cost of the food.
Instacart didn’t stop subsidizing workers’ pay with tips until February. They did it after heavy backlash. One story was about a worker who received $10.80 for a job when he received a $10 tip, can you believe that?! This is ridiculous considering Instacart delivery workers don’t just delivery items, they usually have to shop for the customers as well.
Delivery workers at Caviar get to keep all their tips as well.
Amazon and Whole Foods Delivery
Delivery workers at Amazon can receive tips via the Amazon Flex app. They had told Slate that “delivery partners still earn $18-25 per hour, including 100% of tips – and on average drivers earn more than $20 per hour.” But according to Slate, the spokesperson did not answer the question on if tips were used to subsidize workers base pay.
UberEats has confirmed that 100% of the tips are given to delivery drivers and not used to subsidize base pay.
There you have it, this list should be helpful in your decision on which app to use for your side gig. As always though, you should test each one to see what nets you the highest earnings per hour. Or better yet, use multiple ones at the same time to improve the overall frequency of your jobs!