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Photo: Smith Collection/Gado/Getty Images

DoorDash is finally beginning to roll out a new pay model for its delivery drivers that will treat customer tips as additional earnings, after announcing nearly a month ago that it will shift its policy.

Flashback: DoorDash's two-year-old pay model, a twist on the "tipped wages" model familiar to many service workers like waiters, came under fire last month. Critics said its approach was deceptive to customers.

How it works: Under the new model, Dashers (the company's name for its meal delivery drivers) will be shown for each delivery request a base pay, plus any promotions they might earn, before they choose whether to take the job.

  • That base pay will vary per delivery job, but will be anywhere between $2 and more than $10.
  • Promotions they might qualify for will include "peak pricing" in times of high demand (similar to Uber's "surge pricing"), and bonuses for completing a certain number of deliveries in a period of time.
  • Any and all tips customers choose to add will be on top of the above pay from DoorDash.
  • In short: Tips will be exactly that — tips. (Here's a look at how the old model worked.)

The big question: Why didn't DoorDash just do this two years ago when it decided to create a new pay model?

  • In short, the company says it's because it was focused on providing earnings that better matched each delivery's level of effort, along with more consistent earnings from order to order.

Yes, but: DoorDash also tells Axios that one trade-off it expects under the new model is that earnings from one order to the next will vary more, though it also predicts that overall, earnings for its Dashers will be the same if not higher. The company says it has partnered with an outside firm that will audit its data to see whether its prediction of higher earnings bears out.

It says the new pay model will be fully rolled out to all Dashers by the end of September.

Go deeper:

Go deeper

Justice Department drops insider trading inquiry against Sen. Richard Burr

Sen. Richard Burr (R-N.C.) walking through the Senate Subway in the U.S. Capitol in December 2020. Photo: Stefani Reynolds/Getty Images

The Department of Justice told Sen. Richard Burr (R-N.C.) on Tuesday that it will not move forward with insider trading charges against him.

Why it matters: The decision, first reported by the New York Times, effectively ends the DOJ's investigation into the senator's stock sell-off that occurred after multiple lawmakers were briefed about the coronavirus' potential economic toll. Burr subsequently stepped down as chair of the Senate Intelligence Committee.

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Illustration: Rebecca Zisser/Axios

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The big picture: Positive fourth-quarter results show Netflix's resiliency, despite increased competition and pandemic-related production headwinds.

Janet Yellen plays down debt, tax hike concerns in confirmation hearing

Treasury Secretary nominee Janet Yellen at an event in December. Photo: Alex Wong via Getty Images

Janet Yellen, Biden's pick to lead the Treasury Department, pushed back against two key concerns from Republican senators at her confirmation hearing on Tuesday: the country's debt and the incoming administration's plans to eventually raise taxes.

Driving the news: Yellen — who's expected to win confirmation — said spending big now will prevent the U.S. from having to dig out of a deeper hole later. She also said the Biden administration's priority right now is coronavirus relief, not raising taxes.