DoorDash Encourages Pre-Tipping
- Tom Lekai
- Nov 2, 2023
- 3 min read
DoorDash is experimenting with a feature to encourage customers to tip their drivers prior to receiving their orders.
If a DoorDash customer places an order and chooses not to tip, a notification will suggest adding a tip for quicker acceptance and delivery of their order. Should the customer continue to refrain from tipping, a second reminder will inform them that drivers have the discretion to accept or decline orders, hinting at the possibility of their order being turned down.
The idea of tipping in advance might seem unconventional. After all, diners in the U.S. don't tip waitstaff upon entering a restaurant. Yet, the effort of delivering food to one's home warrants a tip, irrespective of the food's quality. It's logical for drivers to be more inclined to promptly complete a delivery if they are aware of a forthcoming tip. While some might prefer tipping in cash, it's not always certain.
DoorDash has been testing this tip reminder feature with a select group of customers in the U.S. and Canada. The company plans to introduce it more widely once its effectiveness is confirmed. As per an official statement, there's been a notable reduction in orders without tips, though DoorDash hasn't specified by how much.
U.S. Consumer Delivery Tipping Facts & Figures
50% of U.S. adults who order food delivery always tip the delivery person. However, the percentage varies among different age groups: 31% of Gen Zers, 42% of millennials, and 45% of older generations. (Fox Business, June 2023)
For food delivery workers, 54% of women and 45% of men always tip. (Bankrate, June 2023)
On average, customers tip 19.7% when dining in, but the tipping percentage is lower for takeout and delivery. (Next Gen Personal Finance, August 2023)
On food delivery, people tip an average of 16%. (FinanceBuzz, June 2023)
Food delivery workers have seen a reduction in their tips by 7%. (CBS News, June 2023)
For food delivery, etiquette experts suggest tipping between 10% to 20% depending on the complexity of the order. (CNBC, July 2023)
Some drivers recommend a tip of roughly 15% to 20% gratuity on the total cost of a delivery order. (Business Insider, July 2023)
DoorDash Facts & Figures
DoorDash completed 816 million orders in 2020. (Backlinko, August 2023)
DoorDash reported revenues of $6.58 billion in 2022, marking a 34% increase from the previous year. (Business of Apps, August 2023)
DoorDash had 32 million users in 2022, with the majority of them being from the US. (HelpLama, October 2023)
Among subscribers who signed up for DoorDash's DashPass in September 2022, 66% remained subscribed after one month. (Bloomberg Second Measure, October 2023)
DoorDash has over 2 million Dashers (delivery couriers) on its platform. (Earth Web, August 2023)
DoorDash has partnered with more than 390,000 grocery markets and restaurants on its platform. (HelpLama, October 2023)
DoorDash Dashers Facts & Figures
On average, Dashers deliver for fewer than 4 hours per week. (DoorDash, 2023)
47% of Dashers are people of color. (DoorDash, 2023)
60% of Dashers are women. (DoorDash, 2023)
94% of Dashers say that dashing allows them more flexibility compared with other earnings opportunities they’ve had. (DoorDash, 2023)
35% of Dashers have dashed to avoid filing for government benefits or taking out payday loans. (DoorDash, 2023)
38% of Dashers are parents with children under 18. (DoorDash, 2023)
85% - have sources of income outside of app-based work and/or are balancing other responsibilities like being a student or caretaker, and more than 66% of Dashers say they use DoorDash to make up for lost hours or reduced income from other kinds of work. (DoorDash, 2023)
Very few Dashers - only 7% - rely exclusively on app-based work as a primary source of income. The average Dasher delivers with DoorDash less than than 4 hours per week, and 90% of Dashers deliver with DoorDash less than 10 hours per week. (DoorDash, 2023)
Over 3 million people dashed in the third quarter of 2021, earning over $2.8 billion - despite a tight labor market that made it difficult for traditional employers to hire workers. (DoorDash, 2023)
The flexibility to work when, where, how often, and how much they choose is the reason why 90% of Dashers - who on average nationally earned over $25 per hour while delivering from January through March of 2021 - say they want to remain independent contractors. (DoorDash, 2023)
