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Amazon To No Longer Use Drivers’ Tips To Cover Its Own Base Pay, Will Give A Breakdown Of Earnings To The Drivers

Amazon has pledged to be more clear and specific, about informing its Flex delivery drivers how much they earn, as per an email sent to contractors. Maybe, more importantly, the e-commerce giant will not dip into drivers’ tips to cowl their base pay. As reported earlier this year that the company used drivers’ supplemental earnings to fulfill the $18-to-$25-per-hour base pay they’re guaranteed.

The delivery drivers weren’t conscious of the application due to the lack of transparency. They weren’t informed how a lot of the cash they get came from tips, so a few of them needed to experiment by ordering items themselves to determine what was happening. Going ahead, based mostly on Amazon’s email, the company will begin sending them a fare breakdown for their shift, exhibiting how a lot of their base pay is and how much tips they received.

Whereas earnings differ by area and block, with the change to Amazon’s minimum contribution, it is anticipated nationwide that average earnings for these blocks to extend more than $27 per hour, the email reportedly read.

Amazon has long been criticized for its lack of driver pay transparency. In 2015, a bunch of Prime Now drivers sued the company, accusing it of withholding tips paid through credit cards. One of many plaintiffs stated he had no means of realizing if he was paid right because he had never seen an accounting of his tips.

DoorDash, one other firm that’s got the flak for counting tips towards its drivers’ base pay, has additionally changed its tipping policy a month after promising to take action in a win. Under the new model, each dollar buyer tips will be an additional dollar of their Dasher’s pocket, the company’s announcement reads. If you happen to leave a $3 tip in your order, your Dasher will earn an additional $3.

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Kimberly Thomas

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