hide message

Welcome to the Resource Centre

We make it our mission to work with advocates in civil society, business and government to address inequalities of power, seek remedy for abuse, and ensure protection of people and planet.

Both companies and impacted communities thank us for the resources and support we provide.

This is only possible because of your support. Please make a donation today.

Thank you,
Phil Bloomer, Executive Director

Donate now hide message

USA: App-based delivery services accused of lowering pay with alterations to algorithims

Author: Abha Bhattarai, The Washington Post, Published on: 25 November 2019

"‘Don’t game my paycheck’: Delivery workers say they’re being squeezed by ever-changing algorithms ", 7 November 2019

 ...drivers for many third-party [delivery] platforms say they are being wrung out in ways that...result in lower pay and less transparency...with one tweak of an algorithm, companies can...change wages for...workers, who are not guaranteed an hourly minimum or other employee protections...

...Postmates workers said they are making 30 percent less than they once did after the company changed its algorithms and eliminated a $4-per-job guarantee...A spokeswoman for...[Postmates] said it “remains committed” to allowing its workers to “cumulatively earn even more in a given hour.”...

...DoorDash...made headlines for using customers’ tips to offset workers’ wages...chief executive Tony Xu said the company would begin giving workers their tips....

...Instacart...is facing a class-action lawsuit that accuses it of...using workers’ tips to pay their wages. A spokeswoman...declined to comment....

...Instacart...Delivery workers used to be paid a flat 40 cents per item, with...Instacart began calculating pay based on factors including product weight and driving distance... the company [also] began showing drivers how much of their pay was coming from tips...Workers are not paid for the amount of time it takes them to drive to the supermarket....

...Corwin Samuelson...has been delivering groceries...for Shipt. “Gamified” bonuses, he said, have become a growing reality...A spokeswoman for Shipt said that pay varies, depending on location, store and order, and that the company has “evolved our pay structure” in certain cities to account for factors such as traffic and shopping time...Samuelson says they give him little control over how much money he takes home each week, even if he keeps consistent hours....

Read the full post here

Related companies: DoorDash Instacart Postmates Shipt (part of Target)