DoorDash’s new ‘Earn by Time’ is B.S!

Screenshot of the DoorDash Driver app in the Dash tab with the new ‘Earn by Time’ mode selection.

We have concerns about DoorDash's new "Earn by Time" mode. While DoorDash presents this option as a way to provide more reliability and guarantee an hourly rate for Dashers, there are several issues that raise red flags.

One of our main concerns is that DoorDash seems to mistake this new feature as a grand money making scheme. Unfortunately, Dasher’s would only get paid during ‘active’ time, meaning once an order has been accepted to the picking up (and waiting for the order/food) and dropping off point. You do not get paid to wait around for orders.

DoorDash also appears to be incentivizing customers not to tip or potentially reducing the amount they can tip. The language on their page indicates that tips may be less frequent when choosing to earn by time, implying that DoorDash prioritizes its own profits over the earnings of Dashers. This raises questions about DoorDash's commitment to fair compensation and the financial well-being of their workers.

Get paid a guaranteed hourly rate while delivering. Earnings are based on the total delivery time (from accepting to completing the order). You’ll keep any applicable promotions and 100% of your tips on top of that, though tips may be less frequent when you choose to earn by time. The rate is calculated so you can earn reliably and build in time to dash to meet your financial goals.

On top of not receiving tips, you could be making less money due to the way they are structuring pay with the ‘Earn by Time,’ by reducing the pay of order(s) so that the order(s) meet the threshold of the guaranteed hourly pay (which varies). This can and will include order(s) with and without tips.

Q: What’s an example of how I would get paid?
A: Let’s assume the active hourly guarantee for Earn by Time mode in your city is $14/hour. You choose to dash in Earn by Time mode and begin your dash. After a few minutes of waiting, you are offered and accept an order and drive 10 minutes to get to the restaurant. You wait 5 minutes at the restaurant, then drive another 15 minutes to deliver the order. 

In this example, you spent 30 minutes actively on the delivery, which includes the drive to the restaurant, the wait at the restaurant, and the drive to drop off the order. For your active 30 minutes, you’ll receive base pay at the rate of $14 per hour, which comes out to $7, plus 100% of any tips on top of that. If your delivery had a $6 tip, then you’d receive $13.00 in total pay for this delivery. But because tips in Earn by Time mode may vary or be less frequent, the $14/hour guarantee shown upfront is calculated so you can earn even more reliably to meet your financial goals.

Let’s take another example, still assuming the active hourly guarantee is $14/hour.  This time you are offered and accept an order where both the store and customer are nearby, so the order only takes a total of 8 minutes between the time you accept the order and the time you drop it off.  In this example, you’ll receive $1.87 in base pay for the 8 minutes for this shorter delivery as part of the $14/hour guarantee, plus 100% of any tips on top of that.  If the order had a $4 tip, then you’d receive $5.87 in total pay for this order.

Furthermore, DoorDash does not guarantee that Dashers will not be given more than two orders per hour. This lack of assurance creates a situation where Dashers may be rushed to complete and deliver orders within a set time limit. If they fail to meet this quota or standard, it could potentially result in underpayment or even be counted as a contract violation. This uncertainty undermines the promised reliability and fairness of the Earn by Time mode.

Additionally, there is also no guarantee of order(s) offered if in the case that you receive an order that unexpectedly meets the hourly rate that included a high tip.

As such, they will also require Dashers to accept each and every order they are offered, otherwise they will be taken out of the ‘Earn by Time’ mode.

Remember: you could have many stacked orders as possible with little payouts on DoorDash’s end. They did not say this won’t or guarantee it won’t happen.

Q: Can I decline or unassign offers?

A: When you earn by time, you can decline or unassign up to one offer per hour. If you decline or unassign yourself from a second offer after you have declined or unassigned one in the previous hour, you’ll be given the option to end your dash or switch to Earn per Offer mode to continue earning. If an offer times out because you neither accept nor decline, this will count toward your one decline per hour. 

However, if you’re already on a delivery, declining additional offers does not currently count toward your one decline per hour. You can use the “pause” feature if you’re not in a position to accept offers. If you are switched out of Earn by Time mode and want to switch back in, you must wait at least one hour to start another Earn by Time dash.

The negative impact of this mode extends to restaurants as well. DoorDash is likely to impose rush-order time limits on restaurants to increase efficiency and deliver orders as fast as possible. However, this focus on speed and profit may come at the expense of Dashers' well-being and job satisfaction. They hint at this in their FAQ language:

Q: Why did DoorDash launch this?

A: Earn by Time mode provides Dashers an even more reliable way to earn while dashing.  Dashers who choose to earn this way get the most out of their time on the road, while customers in their city receive their orders faster, improving the experience for all.

DoorDash maintains an illusion of flexibility, but the reality seems far from it. They claim the right to withhold Dashers' earnings if they suspect any fraudulent activity, without clearly defining what constitutes fraud in their system. This lack of transparency leaves Dashers vulnerable to potential unjust withholding of their hard-earned money. 

Q: Are there any other terms or conditions that I should know about?

A: We may modify or end the Earn by Time offering at any time and a Dasher’s access to Earn by Time mode is not guaranteed and may be revoked. We reserve the right to delay payment for purposes of investigation and to withhold payment or deactivate the account(s) of any Dasher if we determine in our sole discretion that a Dasher has used or attempted to use Earn by Time mode in a fraudulent, abusive, or otherwise suspicious manner or in violation of any applicable law or regulation. 

In conclusion, while DoorDash's Earn by Time mode may appear attractive on the surface, it raises serious concerns about fair compensation, order expectations, and the overall well-being of Dashers. As a collective, we urge DoorDash to address these issues and prioritize the rights and welfare of their Dashers over corporate profits.

P.S. This is only available in select cities, which DoorDash has not even released a list of (yet).