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DoorDash faces lawsuit from San Francisco DA over worker classification
San Francisco District Attorney Chesa Boudin has filed a lawsuit against DoorDash for, in his own words, “illegally misclassifying employees as independent contractors.”
DoorDash will deliver non-prescription essentials from CVS
DoorDash is now delivering non-prescription items from CVS.
Food apps in Chicago will soon show the premium you pay for delivery
Starting on May 22nd, Chicago will require delivery companies disclose how much restaurants pay when you order using one of their apps.
DoorDash is temporarily cutting small restaurant fees in half
DoorDash is reducing commissions for local restaurant partners by 50 percent in an effort to help businesses survive the COVID-19 crisis. DoorDash will start applying the reduced commission fees on April 13th and will continue charging the reduced prices through the end of May.
DoorDash now delivers from convenience stores
With the coronavirus pandemic pushing more and more Americans to self-isolate and stay inside, DoorDash is starting to deliver items from convenience stores. Starting today, the company is partnering with both national and regional chains across the US -- including 7-Eleven, Wawa, Casey's General Store and CircleK -- to make essential products like toilet paper, cleaning supplies and snacks available to order. In all, more than 1,800 stores throughout the country are joining the platform, with more to follow in the coming days and weeks.
Food delivery apps, the pandemic and finding a new normal
Like the rest of the world, because of the coronavirus outbreak, the restaurant industry is in the midst of a serious reckoning. As of writing, 23 American states have shut down restaurants except for takeout and delivery. In the UK, McDonald's has completely closed every location, including takeout and delivery. Despite campaigns like Tuesday's nationwide hashtag #thegreatamericantakeout, urging consumers to order takeout from local restaurants, many are shuttering for good. Even delivery logistics are proving a challenge, as illustrated by the large, non-socially distanced crowds assembled outside of Carbone in New York City, waiting for comfort food to go.
After Math: We're not ready for the new normal
We're in uncharted waters here, folks. The new reality that we're collectively facing really began to sink in this past week as ever-greater numbers of Americans have been told to practice social isolation and stay away from public gatherings as much as possible. Here are some of the headlines from the past week that I, for one, never thought this outlet would ever write.
DoorDash will temporarily reduce or waive its commission fees
As cities and states across the US mandate that restaurants cut the capacity of their dining rooms -- or close them all together -- restaurateurs will have to rely heavily on delivery in the weeks ahead. Many eateries are already having a difficult time dealing with reduced revenue due to people staying home out of coronavirus concerns and DoorDash is aiming to help independent restaurants stay afloat by removing or reducing commission fees through the end of April. As of today, restaurants new to DoorDash can sign up and pay zero commission fees for 30 days. Eligible restaurants already onboard will pay reduced fees on delivery orders and won't be charged for pickup orders, but it's unclear as to how long this will be the case. A DoorDash spokesperson said, "Due to the rapidly evolving situation, we will be evaluating conditions week over week, as opposed to assigning a fixed duration and will continue to connect with our merchant partners throughout the process."
Uber, Lyft will compensate drivers affected by coronavirus outbreak
The coronavirus outbreak is affecting many workers, but it could hit those in the gig economy particularly hard when many of them don't get sick leave or other benefits. Those companies may help soften the blow for some of their workers, though. To start, Uber said in a statement to Engadget that it would compensate drivers worldwide for both Uber and Uber Eats if they're either infected by the coronavirus or quarantined by a public health agency for "a period of up to 14 days." Drivers have already received compensation in "some markets," Uber said, alluding to a Bloomberg report that it had compensated quarantined drivers in Mexico and the UK.
Chipotle is redesigning its restaurants to better serve mobile orders
No one wants to wait in line for their Chipotle order, and honestly, most people don't want to talk to anyone either. For those reasons, Chipotle's "digital business" -- orders placed through the app, online or via third-parties like DoorDash -- has grown to $1 billion. Now, Chipotle says it's going to make the digital ordering process even better with new restaurant designs optimized for pickups.
Washington, DC sues DoorDash for allegedly misleading users about tips
DoorDash's change in tipping policy has come too late to avoid legal repercussions. The District of Columbia Attorney General has sued DoorDash over claims it not only stiffed couriers (aka Dashers) through its tipping practices, but misled customers about where tips go. As DoorDash used tip money to replace a courier's base pay rather than add to it, that worker's pay wouldn't change for any tip under $10 -- but customers didn't know that, according to the District. The messaging in DoorDash's app and FAQ was reportedly "ambiguous, confusing and misleading," leading customers to believe that delivery people were being paid extra like "any reasonable consumer" would expect.
Tipping point: The gig economy hits delivery drivers in their wallets
Tipping is ubiquitous to the American service industry with consumers encouraged to give "a little something extra" to their waiters, bartenders, and baristas, dry cleaners, dog-walkers and delivery drivers. But it wasn't always like this. The practice of tipping started in England and made its way to our shores at the turn of the 18th century where it met strident social opposition. Deemed the "vilest of imported vices" by an 1899 NYT op-ed, anti-tipping sentiment reached its peak in 1915 when six states outlawed the practice outright. Since then, tipping has grown into the status quo, so much so that restaurants are allowed to pay their tipped staff less than the federal minimum wage and nobody even bats an eye, though the practice is once again falling out of favor -- this time at the hands of the gig economy.
DoorDash security breach affects nearly 5 million users
DoorDash announced today that it suffered a security breach that affected 4.9 million users. According to the company, on May 4th, 2019, an unauthorized third-party gained access to information belonging to DoorDash users including consumers, delivery drivers and merchants who joined the platfrom on or before April 5th, 2018. The information accessed included names, email addresses, physical addresses used for deliveries, order histories, phone numbers and passwords, which were encrypted using hashing and salting techniques. The company is advising users to reset their passwords, though it is not believed that any passwords have been compromised.
California governor signs labor law meant to fix the gig economy
It was really just a matter of time, but it's now official: California Governor Gavin Newsom has signed the state's Assembly Bill 5 into law. The measure is intended to reclassify many gig economy workers as employees by applying a test that determines whether or not they qualify as contractors. If they do, they have to be free from the control of a company, handle work beyond the typical scope of that company's business and routinely engage in an independently-formed business similar to the work they perform. In theory, this will force many ridesharing and courier companies to offer rudimentary labor rights like minimum wage, overtime and paid leave.
Panera Bread now delivers through DoorDash, GrubHub and Uber Eats
Panera Bread can't resist the siren's call of offering food through third-party delivery apps. The restaurant chain has made its delivery service available outside of its own apps for the first time, offering its menu through DoorDash, GrubHub and Uber Eats. Don't expect to see someone from those services at your door, though. Panera's own couriers will fulfill orders in "most markets," so you could still see familiar faces if you're used to having your Toasted Frontega Chicken sandwiches delivered.
DoorDash finally makes sure delivery drivers get your tips
DoorDash drivers will earn 100 percent of tips under a revamped set of rules on pay. The delivery service today announced a new tipping and earnings policy that it claims will lead to drivers earning more on average. The development comes more than a month after news reports exposed the company for pocketing its driver's tips. In response to the widespread backlash, DoorDash CEO Tony Xu promised it would reevaluate how it pays its workers.
DoorDash eyes autonomous food delivery with latest acquisition
It's no secret that DoorDash wants to deliver your food with autonomous vehicles. Early this year it partnered with GM to test deliveries via self-driving Cruise vehicles, and in 2017, it was part of a Starship Technologies trial that sent deliveries scurrying about in six-wheeled robots. Now, DoorDash is getting a bit more serious. As The Verge reports, the company just acquired Scotty Labs, a startup that makes autonomous and remote-controlled vehicle technology.
DoorDash buys food delivery app Caviar from Square
The food delivery world is getting smaller. DoorDash has agreed to buy rival food delivery platform Caviar from Square for a total of $410 million in cash and stock. Square CEO Jack Dorsey said during a second-quarter earnings call today that the move would allow the company to focus on its core money delivery business.
DoorDash CEO announces that now your tips will go to delivery workers
Earlier this year, news reports exposed that not only did DoorDash (and others, like Instacart) sometimes lower its payout to delivery workers when customers tipped, its payment system didn't make clear that this was happening. Last month it changed payouts to show how much of "Dashers" income came from the company vs. tips, but it still used customer tips to account for some of the guaranteed fee it would otherwise pay for a delivery, instead of simply adding them on to an already set rate. Tonight, after a New York Times reporter gave a first-hand account of what it was like to make food deliveries for DoorDash and UberEats via Bike -- and after UberEats sent an email to customer touting the fact that they know where their tips are going -- DoorDash Tony Xu announced his company will change its policy. Without getting into specifics, which he said will be announced "in the coming days," Xu tweeted that his company misunderstood "that some customers who *did* tip would feel like their tip did not matter." So now, "the new model will ensure that Dashers' earnings will increase by the exact amount a customer tips on every order." Or, the way you probably thought tips worked.
McDonald's ends UberEats delivery exclusive by adding DoorDash
If you suddenly have an urge for McDonald's at home, you won't need to go through UberEats to get it. The fast food chain has expanded its delivery options to include DoorDash. The rollout will start in Houston, where the courier option will be available in over 200 restaurants starting on July 29th. McDonald's will also be part of the DashPass subscription service, so you won't have to pay extra for delivery if you regularly get your Big Mac fixes at home.
