New York (CNN) 鈥� Some DoorDash drivers are fed up with the unpredictable delivery business: Some orders can take longer than expected due to circumstances outside of workers鈥� control. The company said it has a solution.
DoorDash will begin offering its delivery drivers hourly pay, the company said Wednesday, to help make sure workers have a better sense of how much they鈥檒l earn per shift. The new payment model comes just after DoorDash criticized .
The delivery service said Wednesday that Dashers, its name for people who make deliveries, will now have the option to earn a prorated hourly minimum rate, in addition to tips. The clock starts when they accept a delivery offer and ends when they complete the delivery.
DoorDash made the announcement as part of a series of changes in honor of its 10th anniversary, noting that the new payment option is 鈥渢he biggest-ever update to the way Dashers earn.鈥� It will roll out nationally through the end of the year.
Here鈥檚 how it works: When deciding whether to take an offer, drivers can see how much they鈥檒l earn per hour. Previously, delivery workers were paid per delivery offer, an option which remains available. The hourly rate is calculated to be comparable to what workers would earn per delivery, the company noted.
The advantage of an hourly rate is that Dashers know that they鈥檒l be compensated for their time if they鈥檙e stuck in traffic or waiting for slow restaurant order, noted Cody Aughney, head of DoorDash鈥檚 Dasher and Logistics business teams, during an event discussing the changes.
鈥淔rom talking with Dashers we know there are some who prioritize more consistency,鈥� he said. 鈥淭hey want to know exactly how much they鈥檙e going to make for their time spent Dashing.鈥�
Hourly rates won鈥檛 be available in markets where there is a legislated minimum hourly wage for drivers, according to the company.
New York City . Delivery workers in the city make about $7.09 per hour, and the new rate will let them eventually earn at least $19.96 per hour, according to the Mayor鈥檚 office. Pay is going up to $17.96 an hour on July 12, and then increasing to nearly $20 an hour in April 2025.
DoorDash said in a statement around the time of the city鈥檚 announcement that it is considering litigation to push back against the 鈥渆xtreme policy,鈥� saying it goes beyond the standards other industries are held to 鈥� though it鈥檚 not opposed to a minimum wage for delivery workers.
On Wednesday, the company said it is making other changes that should help delivery drivers earn more, like letting customers add or increase a tip up to 30 days after the order has been delivered, and introducing a feature called 鈥淒ash Along the Way,鈥� which helps match drives with orders that are along their commuting routes. It鈥檚 also allowing drivers to share location with up to five contacts as a safety measure.
The changes are 鈥渁ll about increasing earnings potentials for Dashers, and providing Dashers with additional peace of mind 鈥� two things the Dasher community is consistently telling us are priorities for them on the road,鈥� Austin Haugen, who leads the product team for Dasher and Logistics at DoorDash, said during Tuesday鈥檚 event.
鈥� CNN鈥檚 Ramishah Maruf contributed to this report.
The-CNN-Wire
鈩� & 漏 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
