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New wage structure not hurting DoorDash drivers' job satisfaction

B.C. DoorDash drivers reported saying their job enhanced their sense of financial security more than did those drivers in the rest of Canada
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DoorDash drivers in B.C. have seen a change in how they are paid in the past year.

DoorDash Inc. (Nasdaq:DASH) delivery drivers in B.C., who in recent months have been working under a new pay structure, appear to be pleased with what they are making, according to a survey that their employer conducted. 

While the employer's involvement in financing the survey may cast doubt on its findings, the poll conducted by Pollara Strategic Insights found that more than seven in 10 Canadian DoorDash drivers, or dashers, said the work "enhances their sense of financial security." That is a sentiment that is particularly strong in British Columbia, where three-quarters of dashers reported experiencing a positive impact from their work, according to the survey.

Nearly all dashers – 95 per cent – strongly or somewhat agreed that it is important to protect their ability to choose when, where and how they work. More than half said they would quit working at DoorDash if they lost that freedom.  

"The survey data shows that all types of dashers value being able to earn money on their own terms, be they students or older dashers with a full-time job,” said Dan Arnold, chief strategy officer at Pollara. 

The B.C. government last year changed regulations for how food-delivery drivers at companies such as Uber Technologies Inc. (NYSE:UBER), Skip The Dishes and DoorDash as well as ride-hailing drivers are paid. 

The new regulations went into effect on Sept. 3 with the big change being that the drivers were not paid a full minimum wage for entire shifts, including when they are waiting for orders to materialize.

Instead, they are paid a special, higher minimum wage of $20.88 for the time that they are working delivering orders. That wage is $20.88 per hour, versus B.C.'s regular minimum wage of $17.40 per hour. 

The gig workers get paid their wage plus $0.45 per kilometre for ride-hailing and $0.35 per kilometre for delivery.

They get covered with compensation benefits from WorkSafeBC. Employers are also forbidden from withholding or deducting tips.

Food delivery companies then started imposing new fees on orders in B.C. to compensate for the B.C. government's move. 

"These new regulations are significantly increasing our operating costs," DoorDash said in October. "All delivery orders placed through DoorDash in B.C. will include a new regulatory response fee ranging from $0.99 for restaurant delivery orders and up to $2.99 for all other delivery orders."

DoorDash told BIV in an email that its most recent count of dashers in B.C. was "more than 64,100" in 2023. 

Investors have been liking DoorDash, pushing the company's share price to an all-time high of US$196.98 earlier this month. 

The company is slated to report its earnings on Feb. 11. 

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