Andrew Guerin
๐ค SpeakerAppearances Over Time
Podcast Appearances
So you start driving back
Off the clock, on your own dime, burning your own gas money to an area where there are lots of restaurants.
Hopefully you can get your kind of next gig.
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.
One is...
Now that drivers are being paid more, apps are passing on those costs to consumers in the form of higher fees.
There's a $5 fixed fee that they tag on.
First, it makes them order less.
And then second, it makes them tip less.
And the tip, though, it's not just the fee that makes them tip less.
And this year in New York, this is actually kind of ground zero for these battles.
The apps actually went further with tips.
And they actually disabled tipping at checkout.
The city forced them to reverse that recently.
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.
So that's one set of things that we saw very clearly.
More supply, less demand.
demand longer waits.
At the same time, exactly what you're saying.
On top of that, for every trip they're doing, the minimum wage applied to base pay rates, not to tips.