The evolving landscape of tipping culture in the US has sparked discussions and debates, with many feeling that it has taken an unexpected turn. In today’s world, it often feels like a tip is a prerequisite for receiving any service, challenging the traditional notion of rewarding good service afterward. The question arises: who is to blame for this shift – the workers or the companies?
Good Service = Reward ..right?
We’ve always known about tipping your server when you dine out. It used to be a choice, a gesture of appreciation for excellent service. Now, in some places here in the Philippines, restaurants tack on a “service charge” of around 10% to your tab. Fair enough – they let you know upfront. But, interestingly, many folks where I come from don’t bother adding an extra tip if there’s already a service charge. It’s just the way it is.
- In the U.S., it’s typical to leave a tip ranging from 15-20% of the bill, which is noticeably higher than what I’m accustomed to with service charges.
- On the flip side, the Philippines has a different approach—tipping is almost non-existent! You simply settle your bill and you’re good to go. It’s quite rare to spot someone leaving a tip; sometimes they even take all the change, including the small bills and coins.
I had this eye-opening chat with a former colleague from the Philippines who moved to the US. She shared tales of ordering food through a delivery app and, surprise, never receiving it even when the app claimed it was ready. Another time, she got her food two hours late, and the delivery guy spilled the beans – orders without tips often get the cold shoulder.
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Food Delivery Services during COVID
Fast forward to the rise of food delivery services during the pandemic. These drivers became unsung heroes, risking their health to make sure we got our favorite meals. Naturally, people started tipping more generously as a way of saying thanks. But here’s the kicker: the pandemic has come and gone, yet the tipping culture lingers, demanding the same hefty amount. Let’s dive into the numbers a bit.
- According to DoorDash, their drivers make $2-$10 per delivery, depending on distance and time. Average delivery time? 35 minutes or less.
- On Glassdoor, it’s revealed that a dasher makes an average of $17-$29 an hour without tips, and an extra $2-$5 with tips.
- ZipRecruiter says the average American makes $28.16 per hour as of December 2023.
In conclusion, a dasher can either make way less or about the same as an average US minimum wage earner.
Companies Should Pay More
A delivery driver may not see the actual tip, but they’ve been around the block enough to know when an order has been passed around because it doesn’t have a tip. It’s not just about time; it’s about factoring in gas and vehicle maintenance for those who use their wheels for deliveries.
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So, here’s the heart of the matter – those big corporations shouldn’t pass on the financial burden to customers through mandatory tips. Another way to go about it could be increasing the base rate per delivery altogether. This way, the debate wouldn’t be a tug-of-war between drivers and customers while companies rake in profits.
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DoorDash and UberEATS Revenue on the Rise
According to Statista, profits for both DoorDash and UberEATS have been on a steady climb from 2019 to 2022.
Now, here’s the plot twist that’s got everyone scratching their heads – while these companies are raking in more cash, the base rate they’re shelling out to their hardworking drivers doesn’t seem to budge. A Redditor also revealed that DoorDash even dropped their base pay from $2.75 to a mere $2.00, pushing for an “earn by hour” scheme.
It’s like a rollercoaster of profits for these delivery giants, but the part that doesn’t add up is why the folks doing the heavy lifting aren’t seeing a fair share of the pie. The numbers tell one story, but the real talk on Reddit paints a different picture.
The tipping culture and the ongoing debate about whether drivers deserve an upfront tip or if customers are obligated to pay one has ignited a social media storm. Employees of these corporate giants insist that tipping is mandatory, regardless of the food cost. On the other hand, customers argue that tipping shouldn’t be obligatory since they’re already paying for the service.
@nbcnews #DoorDash has added a pop-up disclaimer in its app as part of a pilot program for some customers who choose not to #tip their #delivery driver, warning them that orders without a tip might take longer to get delivered.
Numerous customers express a preference for tipping in cash to ensure that drivers receive the full tip amount without the company taking a cut for themselves.
@ridewithtim I took a no tip order doing DoorDash. Guess what happened? #doordashdriver #doordash #ubereats #gigworker #doordashlife #sidehustle #doordashdelivery #doordashdelivery #gigworkerslife #vlogging #doordasher #vlog #fyp #newengland #saturdaynight
The least contentious viewpoint I’ve come across centers on holding the companies accountable for what many perceive as an unfair and unjust payment system. Whatever the stance, the common hope is for a payment system that’s fair to both drivers and customers.