A new plan to allow DoorDash riders to be paid by the hour rather than for delivery has not been extended to Australia.
Earlier this week DoorDash international announced that its “dashers” can earn money either by time or for each trip. Under the time offer, they’re guaranteed an hourly minimum rate plus 100% of tips, rather than the existing model where they earn for each trip, plus tips.
However, Guardian Australia has confirmed that this change is not being offered to Australian DoorDash riders at this stage.
DoorDash, UberEats and Menulog remain the three largest food delivery companies operating in Australia after Deliveroo exited the market in November last year.
As gig economy companies prepare for tighter government regulation in Australia, DoorDash signed an agreement with the Transport Workers’ Union in June last year to allow workers on the platform to access work rights and entitlements, and the ability to unionise.
TWU national assistant secretary, Nick McIntosh, said parliament should urgently pass laws to protect gig worker rights.
“Recently in Australia we saw the collapse of MilkRun, a company that was trying to do the right thing by workers but couldn’t stay in business because the absence of a system to set fair, safe standards in this industry squeezed it out of existence,” he said. “Until we have reform, it is clear that workers in the gig economy will continue to fall behind.”
A March survey published by the McKell Institute on behalf of the TWU found that of the more than 1,000 food, parcel and ride share workers surveyed, at least 45% earned less than minimum wage, and 41% reported working more than 40 hours a week, without earning overtime.
While some companies have begun embracing the concept of treating riders as employees – with Menulog commencing its employment arrangement two years ago – the market’s biggest player, Uber is resisting upcoming reforms, and has been heavily advertising in media in the past few months about the flexibility the current arrangement offers its riders.
The employment minister, Tony Burke, said in a statement last week that the government would introduce legislation covering the gig economy in the second half of 2023.
The legislation will define the minimum conditions expected for gig workers. Burke has previously said that the aim will be to ensure that workers will not need to rely on tips to live, and has said that discussions with industry groups has been productive.
McIntosh said the reform can not come quickly enough.
“Since 2017, 11 food delivery riders and one rideshare driver have been killed in Australia. We need federal parliament to urgently pass lifesaving reform to enable the Fair Work Commission to set fair, safe and sustainable standards in transport.”
