- Amazon is no longer using customer tips to cover the base pay for Flex drivers, The Los Angeles Times first reported. Amazon has since confirmed the change to Business Insider.
- The move comes after the newspaper reported in February that Amazon was taking tips and putting them toward driver base pay in some instances.
- Delivery services Instacart and DoorDash have come under fire over similar practices in recent months.
- Visit Business Insider’s homepage for more stories.
Amazon is ending its practice of using Flex drivers’ tips to cover a portion of their base pay, the company confirmed to Business Insider on Friday.
The Los Angeles Times first reported the change.
Amazon will also give drivers more transparency about how drivers are being paid – including the amount they’re being paid and how much of that pay comes from their tips. The update comes after The Los Angeles Times reported in February that Amazon would sometimes use tips given to drivers to cover part of their guaranteed base pay. Although drivers were guaranteed $18 to $25 per hour, Amazon on average only put $19 on average toward that hourly wage, the report says.
"We are excited to announce that starting August 22 we will be raising Amazon's minimum contribution for Prime Now, Amazon Fresh, and Whole Foods Market blocks," an Amazon spokesperson told Business Insider in a statement. "Amazon's contribution will be at least $15-$19 per scheduled hour, depending on location. As always, for deliveries with tipping opportunities, drivers receive 100% of the tips. While earnings vary by region and block, with the change to Amazon's minimum contribution, we expect nationwide average earnings for these blocks to increase to more than $27 per hour."
Amazon Flex is a program that allows on-demand drivers to make Amazon deliveries using their own vehicles. Flex drivers use an app to set their schedule, check their earnings, and navigate their delivery route. Amazon touts the program as a flexible gig where drivers can make their own schedule, similar to working as an Uber or Lyft driver.
Amazon isn't the only delivery company coming under fire for using tips to cover base pay. Instacart stopped using customer tips to contribute to the $10 per delivery minimum earlier this year after the policy resulted in backlash, BuzzFeed News reported in February. DoorDash, which also was criticized for using tips for base salaries, said on Thursday that 100% of tips will now go toward the driver. The move comes after DoorDash promised to revise its tipping policy last month.
