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Photo: Smith Collection/Gado/Getty Images

Food delivery company DoorDash says an outside firm, Beacon Economics, has completed a preliminary analysis of courier earnings under its new pay model, and found they're earning more — 12.5% more per work hour.

Yes, but: The company has only analyzed earnings for the last month under its previous pay model (August) and the first full month under its new model (October).

Flashback: A few months ago, Doordash was heavily criticized for having a pay model similar to the "tipped wages" that service workers like waiters are subject to in many states — meaning, that it counts customer tips as part of the "minimum" earnings quoted for deliveries.

  • Some customers complained that they felt duped to find out tips weren't extra on top of the couriers' earnings.
  • Under the new model, DoorDash assigns a minimum it will pay for each order based on factors like time, distance, and desirability instead of a flat $1 fee.

What they're saying:

  • DoorDash says that overall earnings (including tips) increased from an average of $17.24 per active hour in August to $18.54 per active hour in October.
  • It also says that in the last couple of weeks it has worked to decrease delivery jobs with guaranteed earnings of less than $3 from just over 5% to under 4% of all orders — something that couriers had complained about under the new pay model, according to Gizmodo.
  • A spokesperson added that "on average, the amount that Dashers see when they’re offered a delivery is higher under our new model because the amount that DoorDash pays has increased." This sometimes includes tips, as customers can choose to include them before checking out.

Be smart:

  • Higher hourly pay can indicate that drivers are taking more gigs each hour. DoorDash head of policy Max Rettig tells Axios that the higher earnings are due to an increase in what the company pays couriers rather than an increase in productivity.
  • Rettig also says that there's been no change in bonus pay that would force couriers to decline fewer deliveries. In fact, the company has removed the minimum requirements for bonuses during high-demand hours, he tells Axios. (However, an upcoming optional rewards program for couriers will factor their acceptance rate for delivers.)
  • And while Rettig says there's no data that suggests that deliveries with low base earnings tend to get smaller tips from customers, it wouldn't be surprising if some couriers assume that will be the case and are less than thrilled to take those jobs.

The bottom line: This report only looks at a short time span, so any conclusions are highly preliminary. The company says it will continue to analyze courier pay over time.

Go deeper: How DoorDash's new payment scheme is playing out (Gizmodo)

Go deeper

Cuomo: "No way I resign" after sexual harassment accusations

Cuomo at a Feb. 24 press conference. Photo: Seth Wenig/pool/AFP via Getty Images

New York Gov. Andrew Cuomo (D) was defiant on Sunday, stating again that he would not resign even as more former aides have come forward with allegations of sexual harassment and inappropriate behavior.

The big picture: Cuomo has denied all sexual harassment allegations against him and said that he "never inappropriately touched anybody." He acknowledged in a statement that "some of the things I have said have been misinterpreted as an unwanted flirtation." Some of the calls for Cuomo to resign have come from within the Democratic party.

N.Y. Times faces culture clashes as business booms

Illustration: Sarah Grillo/Axios

New York Times columnist David Brooks' resignation from a paid gig at a think tank on Saturday is the latest in a flurry of scandals that America's biggest and most successful newspaper company has endured in the past year.

Driving the news: Brooks resigned from the Aspen Institute following a BuzzFeed News investigation that uncovered conflicts of interest between his reporting and money he accepted from corporate donors for a project called "Weave" that he worked on at the nonprofit.

America rebalances its post-Trump news diet

Illustration: Annelise Capossela/Axios

Nearly halfway through President Biden's first 100 days, data shows that Americans are learning to wean themselves off of news — and especially politics.

Why it matters: The departure of former President Trump's once-ubiquitous presence in the news cycle has reoriented the country's attention.

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