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So recently DeliverThat sent out some emails and honestly, I was ready to rip them apart for the first one they sent, but the second one was just great news for a lot of gig workers in the catering space.
So in this article, We are talking about:
Why DeliverThat CANCELED Tip Pooling
What could have changed behind the scenes
Everything in between!
Disclaimer: The content of this article does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This video is for entertainment purposes only. It is advised that you conduct your own research and consult with qualified professionals before applying anything you find online.
Before June 2024
Before June of 2024, Deliverthat had a deal with ezCater that allowed them to operate with a tip pooling system, which anytime tip pooling comes up, there are a lot of people who don’t like it. For good reason a lot of the time.
Some people speculate tip theft, some also don’t like the idea of serving no tip customers, and all for good reason to be honest.
That said however, it introduced a standard to catering orders throughout the industry. Why take a mediocre order on Dlivrd or Jackrabbit Deliveries when you can take an order on DeliverThat and at minimum get paid more?
They also earned the prospect of being the golden child to ezCater, because if every order is under the same standards, why worry about who is paying what?
In fact, in a lot of cases you can take a $90 order on DeliverThat and make almost as much as the $900 order! Which is rough for the $900 order but nevertheless.
June 2024
Around this time, ezCater was getting pushed by other companies to have a tip floor and a guaranteed tip percentage so they can stay competitive with DeliverThat and they banded together to create this minimum tip structure, which was included in the new contract that everyone would have to sign.
DeliverThat would end up making less money from it so instead of signing it, they said no, because they wanted to keep the deal that they made.
Which if you think about it from their perspective, it made sense, after all if you can make more money by keeping things the way they are, why wouldn’t you?
Then ezCater made a move of their own. Fine, if you don’t want to change your contract, that is fine by us. We just won’t provide as many orders to you.
In the summer, some people were starting to feel it. More than a normal slowdown, lots of orders went around to other companies but they weren’t getting as many, and everyone was talking about it.
They also decided to put themselves up for sale in order to not have to make any changes. Which as you can imagine, didn’t go as well as you think.
In fact, Pedro was enjoying the app for a while and then the whole app went dead to him. That also said, they did also have a problem with their iOS system but that wasn’t as much of a problem in comparison.
First Email
Because of all the chatter about the DeliverThat slowdown and the potential sale they were undergoing, people were concerned and for good reason. Afterall, they had a significant order flow and it started to dry up, and if DT got sold, that was a significant source of income.
Then they emailed out their newsletter:
DeliverThat's October 2024 Newsletter
We have heard some rumors regarding drivers experiencing a dip in delivery volumes, and we want to address it head on. We know that recent low delivery volumes have raised concerns among our drivers, and we want to reassure you that we are continuing to work closely with ezCater and remain fully committed to our partnership. Our recent partnership discussions, coupled with an issue surrounding iOS users, made volume seem substantially lower than what is typically seen as we charge into the holiday season.
As we navigate this period, we are confident in our ability to return to normal delivery volume and encourage you to stay informed through official communications. If you hear any information that doesn’t come directly from DeliverThat, please consider it speculation. Your hard work and dedication during this time are invaluable to us, and we genuinely appreciate your continued support.
To be honest, I was ready to rip them a new one. All this says is exactly what they would have been doing anyway, they just repeated themselves, then one day later.
Tip Pool Canceled
DeliverThat Email Update
We have made important adjustments to the way driver earnings work for ezCater deliveries, and we want to share the details with you.
Based on feedback from many of you, we recognized that the ezCater tip pool was not meeting your needs. We’ve collaborated closely with ezCater to develop a more favorable system for our drivers.
Meaning they were feeling the pressure and the losses they were accumulating in terms of order volume and size fell below the threshold of our tolerance for those losses. If they didn’t mess with their volume, nothing would have changed.
The previous tip pool was designed to ensure gratuity on deliveries without pre-authorized tips. To better compensate you for your efforts, we are introducing a guaranteed gratuity based on the order cost.
All I heard was we were condoning no-tip customer behaviors for a long time and now we can finally just ignore those customers entirely.
Key Details
100% of Gratuities Go to You: All gratuities are fully allocated to drivers; neither DeliverThat nor ezCater retains any portion.
As it should be, and to those who are ready to call them out for tip theft and post tip theft, I hear you, but for now we are taking it at face value.
Not to say that I wouldn’t believe they would pull something, it is just not the video for it.
Orders Completed Before October 14, 2024: Deliveries completed before this date will follow the previous tip pool structure. You’ll see your earnings reflected in the driver app.
I just did a couple today actually, I am curious to see how many of the customers I work with normally would tip the way they should. Like how many of the DT customers I work with we scumbags?
Orders On or After October 14, 2024:
Deliveries will have pre-authorized gratuities, meaning the gratuity is set before you deliver the order.
If a customer includes a pre-delivery gratuity, you’ll receive that amount, and the tip pool will no longer apply.
If there’s no pre-delivery gratuity, you will receive a base gratuity based on the total order value.
All details regarding your gratuity and total earnings will be clearly visible in the app.
So wait, does that mean, they could very well be tipping like garbage and we wouldn’t know because it is at or below the thresholds? Well I know how I am handling these orders.
They have a link going over the breakdown of the new system but I think I will make a different set of content in both videos and articles for that, so stay tuned.
That said, we don’t know how that is going to turn out yet, sure some orders are going to be much better and some may turn out much worse. Some may even be not worth it at all now.
Which is why it is important now to make sure you are well diversified in your gig portfolio and develop an exit strategy.
This may turn out not as good as we think, so make sure you sign up for as many apps and get contracts with as many companies as possible like the ones you can find within the Driven Wyld Discord Community!
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If you would like to add some other perspective to the new gratuity system on DeliverThat, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!
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