After outcry, DoorDash promises workers will get 100% of tips

Enlarge / DoorDash CEO Tony Xu. (credit: David Paul Morris/Bloomberg via Getty Images)

In recent months, food delivery company DoorDash has faced a growing backlash over a compensation formula that critics said amounted to DoorDash pocketing drivers' tips. On Tuesday evening, DoorDash CEO Tony Xu announced on Twitter that the company would change its compensation formula so that drivers' "earnings will increase by the exact amount a customer tips on every order."

"It's clear from recent feedback that we didn't strike the right balance," Xu tweeted.

Xu insists that DoorDash never intended to take drivers' tips. Rather, he said, the goal was to protect drivers from low earnings in cases where a customer failed to tip. If a driver's total pay for a job-DoorDash's base rate plus any customer tip-fell below a DoorDash-determined minimum, DoorDash would make up the difference.

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