As millions of Americans have been stuck at home for the last 6 months, with limited options for eating at restaurants, getting take-out or shopping in person, food and grocery delivery services like Postmates, Grubhub, DoorDash and Instacart have seen a massive uptick in business. The problem with delivery services like this, regardless of their obvious convenience, is that their labor practices are usually lacking in ethics. San Francisco's District Attorney Chesa Boudin announced last month that he is working on reclassifying the delivery workers that are employed by DoorDash as employees rather than "independent contractors" so the companies they work for will have to follow the state's labor laws and have access to benefits, higher wages, etc.
Many workers employed by delivery companies are immigrants or members of vulnerable populations, and are being exposed to potentially risky environments by coming in contact with customers or spending lots of time in public places. As of now, an organization like Postmates allows some partner restaurants to keep the full amount of money that the meal cost from the order instead of taking a high commission, but restaurant owners are worried that new laws mandating that delivery workers earn more once reclassified as employees will change that business model.
DoorDash has been one of the leading food delivery services in the U.S. for the last couple of years, and it's possible that SF's new motion could set an example for other companies to follow. Its current business model makes a profit by charging restaurants a 20% fee on orders, as well as a service and delivery fee for customers. "Dashers," their contracted workers, are paid based on how much they work, the distance they travel, other promotions put out by the company, and tips from customers. According to salary reports on Glassdoor, DoorDash workers make between $10 and $15 an hour, which is at or below the minimum wage in California. The reclassification of workers can help them be protected under California law, and eligible for protections they're not currently being given.
Questions:
1. How could companies like DoorDash restructure their business models to pay workers more?
2. Do you think the government should be able to control how they classify their workers?
3. Is it likely that the Attorney General's motion will pass? Why or why not?















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