DoorDash CEO addresses popular Reddit comment about driver wages

Tony Xu, the head of DoorDash, has strongly refuted allegations made in a viral Reddit post, which accused the food delivery service of unethical practices, such as implementing a “despair score” to decide delivery worker pay.

The post originated from an anonymous Reddit user claiming to be a “developer of a major food delivery app,” who mentioned posting from a “burner laptop” due to being under a strict NDA.

This so-called “developer” suggested that the company constantly looks for ways to increase profits at the expense of drivers, referring to them as “human assets” in corporate discussions.

The unknown user expressed their disgust with the system, saying, “What’s actually making me sick, and the main reason I quit, is my ‘hopelessness score.’ We track hidden metrics for drivers based on their acceptance behavior.”

Since the post has not been verified, it has led to questions about its authenticity, with some speculating whether it might even be AI-generated.

Regardless, the claims spread quickly on social media, prompting a response from Xu. Reacting to a post that shared the Reddit screenshot, which exclaimed, “Holy f-king st,” Xu responded: “Oh my god, my king, that’s right! This is not DoorDash. We fire anyone who promotes or condones the kind of culture described in this Reddit post. There are so many things wrong with this post.”

Xu condemned the assertions, stating that the situation described was “horrifying,” and if it were true, those responsible should feel ashamed.

The anonymous developer also criticized the app’s “priority delivery” feature, calling it a “complete scam” that doesn’t expedite service, while alleging that the funds collected from customers are funneled into corporate slush funds aimed at lobbying against driver unions.

Some users claimed that the company’s algorithms reduce drivers’ base pay when customers are perceived as high-value but low-generosity individuals, leading to frustration: “You pay their salaries so we don’t have to,” one commenter noted.

A DoorDash spokesperson refuted the claims, asserting that the company “does not and has never used these features, including the Despair Score.” They emphasized that their commentary pertains solely to the company.

DoorDash also released a comprehensive blog post denying the allegations, asserting they’ve never referred to drivers as “human assets” and defended their priority delivery service as legitimate rather than deceptive. They further disputed the notion that drivers’ wages are impacted by customer profiles.

“We do not and will not use anything like a ‘despair score.’ Times have changed,” the blog stated, calling the term and concept both scary. “We’re not tracking how much cash Dashers have and determining pay based on that. That’s not how we operate.”

This controversy arises amid increasing scrutiny of algorithm-driven business practices on Capitol Hill, particularly following a report revealing that Instacart charged customers dramatically different prices at various retail chains.

The findings have prompted Congressional discussions about potential regulations targeting algorithm use in businesses.