DoorDash offers delivery workers hourly rate, but there’s a catch

DoorDash will give delivery workers the option to be paid a guaranteed hourly minimum rate instead of being paid per delivery, the company said Wednesday. The new option, a novelty in the gig worker industry, comes as DoorDash and other app-based gig companies like Lyft and Uber will have to provide New York City delivery workers with a guaranteed minimum wage of $18 per hour.

While DoorDash has positioned this new offering as a way to maintain flexibility while also promoting reliable earnings, the hourly rate isn’t really an hourly rate. It’s based on the time spent on a delivery, “from the moment [a worker accepts] an offer until it’s dropped off — plus 100% of tips,” according to the company.

“We know there are Dashers who prioritize reliability in their earnings, who simply want to get on the road and dash with an exact, upfront idea of how much they’ll earn for the time it takes to complete an order,” reads a blog post from DoorDash. “Earn by Time was developed precisely with those Dashers in mind.”

Labor rights activists and gig workers have…