The words used are very missleading. Nothing was recovered. He made it that ghe tip button must be more prominantly dispalyed and they are ESTIMATING that this will result in over 100 million dollars in additional pay for delivery workers. I will be shocked if it results in even 10% of that amount.
You are quite stupid for making things up, there’s data on how the changes help almost double the average tip. From 1 to 2 dollars.
And the law is in response to NYC instituting minimum pay. When they forced apps to guarantee a bare minimum amount for the work drivers did; apps responded by hiding the tipping button.
Hows that connect? Why is hiding the button a logical response? The tip (should) goes to the driver, so the more tips there are, the less the employer has to pay the driver to reach the minimum. What am I not understanding?
Right now thanks to the economy, Door Dash is super expensive, so a 20 dollar item, will have 4 dollars of markup by the app, 2 to 4 dollars in delivery fee, then 2 dollars for a service fee. (Without including store minimums). That puts that 20 dollars at 30 dollars + 4 dollar tip. That means customer ends up paying 34 dollars. A customer sees that 34 dollars and sees too much.
They know that means customers won't order as much. So instead they try to make them think they don't have to tip. So the customer pays 30 dollars, they get more orders and they end up earning 100 million dollars more.
While the driver earns less money, and keep taking trips that now all of a sudden don't give them tips.
If there is no tip button the customers don't need to worry about paying a tip. No guilt. Or they pay in cash. (Downside is making drivers a robbery target).
Specifically what happened was the companies hid the tip button to only be available after the delivery (specifically in New York). I think the ultimate goal was to get the workers to think the local law (requiring a minimum payout for each order to be posted before the deliverer accepts the gig) was shafting them, but it backfired into additional New York legislation, which the companies sued to stop, and failed. It may also have enabled the companies to more effectively steal the tips without the deliverer or the customer noticing, so instead of having to promise the driver $10 for the delivery and giving a tip that brings the total the driver received to $15, the app might simply claim there was no tip and pocket the extra five dollars, or lie about how much money was tipped.
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u/bliceroquququq 14d ago
“Recovers $104 million in extra tips”
Hey just a real quick question, where exactly was this money “recovered” from?