DoorDash Inc (NYSE:DASH) has said it will begin offering hourly pay to its delivery drivers in an effort to address concerns about unpredictable earnings.
Under the new payment model, known as Dashers, drivers will have the option to earn a prorated hourly minimum rate in addition to tips. The clock will start ticking when they accept a delivery offer and will stop once the delivery is completed.
The move comes as some DoorDash drivers have expressed frustration over the lack of control they have when it comes to delivery times and wages.
DoorDash described the change as the "biggest-ever update to the way Dashers earn" and plans to roll it out nationwide by the end of the year.
The introduction of hourly pay is aimed at providing drivers with a sense of consistency and ensuring they are fairly compensated for their time, regardless of external factors such as traffic or delays at restaurants.
However, the new rates will not be available in markets where there is a legislated minimum hourly wage for drivers. DoorDash has been critical of New York City's recent minimum wage policy for app drivers, but the company clarified that it is not opposed to a minimum wage for delivery workers.
DoorDash also announced other changes to support drivers in increasing their earnings. These include allowing customers to add or increase tips up to 30 days after the delivery, introducing a feature called "Dash Along the Way" to match drivers with orders along their commuting routes, and enabling drivers to share their location with up to five contacts as a safety measure.
As DoorDash celebrates its 10th anniversary, the company said it is taking steps to address driver concerns and improve their experience in the ever-growing delivery business.
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