In this episode of the Penny Stupid Podcast, we delve into the contentious topic of tipping for Lyft and other delivery services. My co-host Damon and I share our contrasting opinions on whether tipping should be based on service quality and if it has become excessive. Damon, who occasionally drives for these services, argues that tipping is crucial for drivers who earn very little otherwise and rely on tips to supplement their income.
However, he also acknowledges that tipping for simple transactions has become excessive. On the other hand, I acknowledge the complexity of the issue, particularly due to changes in tipping policies by companies like DoorDash and Walmart Spark.
Damon highlights DoorDash's new policy that hides the tip amount from drivers until after the delivery, which frustrates him as it affects his speed of service.
We also discuss the recent policy in New York that allows customers to tip at the end to reduce pressure and potential issues with non-tipping.
Both Damon and I agree that the problem lies more with the companies than consumers, as customers may not realize that drivers receive minimal base pay. Damon shares his frustration with companies like DoorDash that rely on customers to subsidize drivers' pay through tips.
We note that this tipping issue applies more to food delivery apps than rideshare apps like Lyft and Uber. We discuss how drivers for Lyft and Uber are evaluated solely based on their base pay, with tips being considered bonuses. Damon explains that most drivers won't accept rides with low base pay unless the tip is generous.
However, he expresses frustration when he tips well but experiences late delivery due to batch orders.
We also touch upon the reduction in driver pay by Lyft and how it has made it challenging for drivers to maintain a nice car unless they exclusively work in the higher-tier category.
We explore the pooling of tips in the delivery platform DeliverThat, which has both advantages and disadvantages for drivers.
Lastly, we discuss the complexity of tipping in services like Instacart, where shoppers have to consider several factors such as pay, number of items, and store efficiency. Overall, we emphasize the need for fair models that consider the interests of both customers and drivers in the tipping system for these services.
Chapters
0:00:00 Introduction and Topic Introduction: Should I tip Lyft drivers?
0:01:10 The importance of tipping for drivers' income and service quality
0:02:09 Discussion on the changing tipping policies of DoorDash
0:03:11 New tipping policies and customer perceptions in New York
0:04:34 The challenges and perception issues with tipping in food delivery
0:05:37 Comparing tipping practices between food delivery and rideshare services
0:07:01 Evaluating base pay and time considerations for accepting orders
0:08:22 DoorDash's pay structure and the need for change
0:09:41 Cherry-picking multiple apps for better pay
0:11:11 Lyft's reliance on new, inexperienced drivers
0:12:23 The pooled tipping approach of DeliverThat
0:14:17 Incentives and challenges with pooled tips in food delivery
0:15:39 Tips and the challenge of balancing pay and effort
0:16:43 The varying challenges of different stores for Instacart shoppers
0:18:28 The struggle of finding suitable replacements and its impact on pay
0:19:54 Better tipping patterns in blue-collar neighborhoods
0:21:02 The reluctance to tip on expensive rides and the shift to back-end tipping
0:23:00 The Importance of Tips in Food Delivery
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