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Andrew Guerin

๐Ÿ‘ค Speaker
87 total appearances

Appearances Over Time

Podcast Appearances

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

So you start driving back

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

Off the clock, on your own dime, burning your own gas money to an area where there are lots of restaurants.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

Hopefully you can get your kind of next gig.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

And what it looks like is people are driving further, driving longer, spending more time, spending more gas, trying to find that next job as two things are really going on here.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

One is...

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

Now that drivers are being paid more, apps are passing on those costs to consumers in the form of higher fees.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

There's a $5 fixed fee that they tag on.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

First, it makes them order less.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

And then second, it makes them tip less.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

And the tip, though, it's not just the fee that makes them tip less.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

And this year in New York, this is actually kind of ground zero for these battles.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

The apps actually went further with tips.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

And they actually disabled tipping at checkout.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

The city forced them to reverse that recently.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

If it becomes more lucrative to do gig work, you get more people piling onto the apps, kind of congesting the apps, which means like people spend more time trying to wait for their turn to get a delivery issued to them.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

So that's one set of things that we saw very clearly.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

More supply, less demand.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

demand longer waits.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

At the same time, exactly what you're saying.

The Last Show with David Cooper
Guaranteed Pay For Delivery Drivers Doesn't Exactly Work

On top of that, for every trip they're doing, the minimum wage applied to base pay rates, not to tips.