DoorDash Is Hiking Customer Fees To Pay For a Law It Helped Write

An anonymous reader quotes a report from Motherboard: In the months since a coalition of app-based gig companies successfully passed Prop 22 in California, exempting themselves from reclassifying their workers as employees, DoorDash has been silently passing costs onto consumers. The company-funded Yes on Prop 22 campaign claimed that not passing the ballot initiative would result in higher prices for consumers, and in early December, news first broke that gig companies would be charging more anyway to cover the cost of benefits promised in Prop 22 such as a healthcare stipend and a minimum pay guarantee. It's also not clear whether these new benefits warrant price hikes as an October 2019 study by the Berkeley Labor Center of Proposition 22 found that driver pay would come out to $5.64 an hour. Nonetheless, companies in the coalition signaled they'd have to pass costs onto consumers instead of absorbing them into their already unprofitable enterprises.

Now, DoorDash is raising its service fee to 15 percent in California, which according to an in-app description 'helps us operate DoorDash & provide a minimum pay guarantee to California Dashers. Service fees are, according to DoorDash, also calibrated by market demand and Motherboard has seen receipts where the service fee jumped as high as 21 percent. A DoorDash spokesperson told Motherboard that the company is raising fee percentages for orders in California to cover Prop 22 and is keeping a close eye on the impact of these various price hikes and fee increases, adjusting them when necessary. It's important to remember, however, that for DoorDash and other companies, that usually means when a policy is affecting the gig economy's schemes to realize previously illegal profits.

Read more of this story at Slashdot.