Door Dash raises $1 billion; pays drivers $1

Have you heard of this food-delivery outfit? They just raised half a billion dollars from Softbank at a $1.4B valuation. What is their business model, you ask?

They put restaurant menus and logos on their website whether the establishments signed up as partners or not. They then tell their couriers not to identify themselves as part of DoorDash when picking up these rogue orders.

True to this cloak-and-dagger culture, the company’s cut is partially hidden in quietly inflated menu pricing, which restaurants don’t appreciate, in addition to a customer-facing service charge.

Uh-oh, you think, another 1099, gig-economy job. But maybe with all the money they collect overcharging for unwilling restaurants’ product  and capital from sweet investor “Vision Funds,” they’re taking care of their delivery folk?

Oh, they pay as little as $1 per delivery, plus “100% of tips.” Only if the tips don’t equal the “guaranteed amount” will DoorDash itself pay its courier-partners-but-not-employees more than $1. Essentially, customers should either grossly overtip or not tip at all if they care about the couriers over the company (protip: tip cash).

But maybe DoorDash takes care of its workers in other ways?

Well that’s an unusual and generous benefit. Are these signs available from DoorDash’s offices? Maybe! And a billion-dollar company has got to have some nice office space right?

Hmm. Well, I’m sure after getting sued for misclassifying its employees, I mean, independent contractors, DoorDash is now very careful with such language on public-facing materials.

Oops. Search and replace missed one.

(All screen shots retrieved 2 March 2018.)