Do you guys tip delivery drivers?

You’re asking the wrong question. The truth is that Doordash and JustEatTakeaway, parent company of Seamless and Grubhub, are all losing money. These platforms are of scale already, and the path to actual profitability is hairy. You raise the prices on these things and the churn will shoot through the roof as everyday Americans become less able to afford them. They are subsidizing YOU. Venture capitalists are losing their money so that you get your food more cheaply than the market price because they’re currently gunning for market share and want to be a “winner-take-all” in what they think will be a future profitable market. They could very well be wrong about that and are just fools pouring their money down the drain, to YOUR benefit.

Having independent contractors receiving cash tips is just a tax scheme, but that’s a separate conversation. These people are not paid enough to live without tips, and even with tips must live with many roommates in far-flung communities to get by. That’s how the math pencils. To not pay them is to be a freeloader who is again subsidized by the people who actually tip, not the other way around. I hate tipping as much as or more than you do, but the business model requires it, so to not pay one is to leech off of the other customers in the system. This “gimme 20% for rotating the iPad” foolishness is nonsense, but someone riding a bike through NYC traffic with a heavy cube on their back who brings me food through rain, sleet, snow, and all that other USPS slogan junk is worthy of their pay.

TLDR: This business model would not be available to you without VC subsidies and the other customers who pitch in a few bucks so that some first-generation immigrant can live with 5 roommates and give you food, receiving peanuts in return. Be grateful for that or pitch in and giving a hard-working laborer their due.

I tip like $3-4 to delivery drivers but I wish you didn't have to tip in advance. I just got an order last night and the dude had the drink like sideways in the bag… We're put in the position of 'bidding' for drivers so if you don't tip you'll get it slower. Would happily tip afterwards for good service but then how would the guy know that?

Personally just hate tipping culture in general and have committed to tipping only when someone literally comes to the table and not on counter service. Someone handling 6-7 tables and running around, or someone biking around the city deserves a tip. Somebody just taking my order at the register does not. It's a dumb holdover from the pandemic where people were so willing to tip extra even at normal QSR places to support restaurants and unfortunately it's stuck. I blame the POS systems for pushing tipping where it doesn't belong and the shitty management who leaves it on when they know it's not warranted.

You ever see how some of their bikes have gloves over the handle bars. Its because sometimes its so damn cold, that even while they are generating heat by being active, its still too much. Have a heart and tip bro - would be nice if they would be paid a fair wage, but the burden is unfairly on us to help them so try to do your part. 

I generally tip UberEats $10 for small orders and $12-$15 for large orders. My place isn't the easiest to get to and I'm a 3rd floor walkup - deliver to door. So I think it is fair.

Definitely tip. Don't need to do 20%, I typically do 11-13%

Analyst 2 in IB - Cov

I tip $0 on delivery orders. I view the service as a commodity and that we should not be expected to subsidize their salaries, when DoorDash / Seamless already charge hefty fees. Interested to hear what ya'll think.

1. You're an asshole for this behavior

2. You're impolite

3. You're insensitive for bragging about this

4. You largely have much money available to tip, yet you don't

5. I bet no one wants to deliver you food and they probably spit in it
 

Regarding my opinion on tipping overall, I'd say I look like an asshole to the average person. I despise Square point-of-sale machines throwing ludicrous suggestions in my face, hate the automatic gratuity and service charges being added, and do not believe the barista needs an extra $2 on top of my $7 latte just for doing their job. It's over-the-top, plain n' simple - there have been dozens of conversations about this on this forum. 

That being said, not tipping delivery drivers is absolutely absurd. The premise of the tip is to a) highlight exemplary service, or b) subsidize a less-than-minimum wage exception that indicates that somehow employers are legally allowed to pay their people less money. This conversation is a whole other issue in and of itself, but you get the point. Delivery drivers fall into category number two always, and frequently number one. 

I'll ask you this - do you think not tipping the guy is somehow 'getting back' at DoorDash or whomever? The notion that you're justifying this with some dumb remark about 'subsidizing the corporations' is genuinely laughable, and I'll agree w/ the commenter above me that it's hilarious that you think this as an IB analyst. Sure, some delivery drivers suck, but they're overwhelmingly people who are stuck in a rut or two, just trying to earn a little extra cash by scraping by. You're not getting back at DoorDash, you're just fucking over someone who is trying to get you your food. 

The 'service as a commodity' remark also exemplifies your character - let me tell you, you're not special because you're a banker. From three sentences alone, it's pretty easy to make the inference that you believe you're above the driver, they should be serving you, and all of that. Maybe this is an excellent troll post, maybe you're an idiot, and most likely it's a combination of the two. Jesus, man. 

Anyways, best of luck moving forward in this world with that kind of mentality. Cheers!

I pay $0 to analysts for bonuses. I view the service as a commodity and that we should not be expected to subsidize their salaries. Interested to hear what ya'll think.

This gig app delivery drivers dont get a salary or hourly wage. They are classified as independent contractors/self-employed businesses. The base rate for a delivery driver is like 3 dollars but can go to like 5-7 dollars during a surge. That is covered by doordash irregardless of your tip. However, who tf is taking an order and wasting gas for 3 dollars? Nobody so your order will just sit until they stack it with a decent person who did tip and then it gets to you all cold. Throw a couple dollars their way, no need to be so stingy. Alternatively, cook your food at home if you cant afford a couple dollar tip. 

I was a delivery driver in college. Thanks to all of you who tipped. I worked directly for the store, delivery charge was $2. If the order was around 50 bucks or lower I didn't expect tip to change. $0 happened about 10% of the time, $2 was low (generally college students, which is fair, I understand money is tight), $3 I considered good, $4 or higher made me happy. I stopped looking at how much I was tipped on each run, don't need that kind of emotional roller coaster.

I never considered the job to be hard, probably because I saw how hard the cooks worked. They have fast paced, difficult jobs in a blazing environment. I tried to pay it forward short of sharing my tips. Every one of them smoked cigarettes and weed, and did pills. I smoked them up and gave them rides home whenever I could. Also gave a few random drunk people at rides home after my shift. Never took money from them. Better I drive than they do.