DoorDash Inc. will employ delivery workers for the first time as it moves into the growing field of super-fast deliveries.
DoorDash DASH, launched on Monday, began offering 10 to 15 minute deliveries in the New York City neighborhood of Chelsea, and will soon be followed by other launches as DoorDash seeks to mimic services offered by GoPuff and other younger rivals that are challenging the nation s leading delivery app. Employee couriers will do the work, a different approach for a company that has spent millions of dollars trying to classify its millions of delivery workers as independent contractors.
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In an interview with MarketWatch, DoorDash President Christopher Payne said that the employee model makes sense for this new offering, but he said that the company continues to believe in the independent-contractor model for the majority of its delivery workers.
The prep and pick time is very short for ultra-fast delivery, he said. The couriers will be doing picking, stocking, customer service. That is a difference from what we do on the Dashing side. DoorDash delivery workers, which the company calls Dashers, pick up food and other goods from restaurants and stores and are paid per delivery, not by the hour. The price for the new ultra-fast offering will start at $15 an hour, not including tips.
Payne acknowledged that some of the Dashers we know want more work like this, they want employment. We feel like this will be a good option. How gig companies are trying to rewrite labor laws in the U.S.
DoorDash is one of several companies that offer urban delivery in 15 minutes or less that include GoPuff, Buyk, Jokr and Getir. According to a recent report by the Information, Instacart, the grocery-delivery app, is considering a foray into faster deliveries. DoorDash will use micro-fulfillment centers it called DashMarts as hubs for faster deliveries. The company opened DashMarts last year, and now has 25 of them in the country, including the Chelsea DashMart. The company said they carry more than 2,000 items, including fresh and frozen groceries, local products, snacks, and more.
For customers who pay $9.99 a month, the ultra-fast offering will have no additional cost for orders of at least $12. For non-subscribers, Payne said fees will be as low as $1.49 per delivery, highlighting affordability as one of the main reasons DoorDash is confident that it can stand out in a field that is growing more crowded every day.
In-depth: The food-delivery apps business has more than doubled due to the pandemic. A new DoorDash business called DashCorps employs couriers directly and is hiring more couriers - some of whom are former Dashers - for future ultra-fast delivery locations that will be announced in the coming weeks and months, according to the company.
A mix of 60 part-time and full-time employees per location will have a set schedule and be eligible for some benefits, and those who work at least 30 hours a week will be eligible for health benefits, a company spokeswoman said.
DoorDash couriers will be provided with Zoomo e-bikes, unlike Dashers, who use their own transportation. Payne said that the company intends to have couriers who will be using a new, specific app to deliver goods from other merchant partners, such as bodegas and other grocery stores.
DoorDash stock has gone up 11% year to date, while the S&P 500 Index SPX is about 21% higher this year.