Is DoorDash laying off Dashers?

Chief Executive Tony Xu announced the cuts in a Wednesday morning message to employees that was later posted to the company's corporate blog. The company had over 8,600 employees as of the end of last year, not including delivery people — known as “Dashers” — who will not be affected.



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While a nationwide labor shortage has jolted companies across sectors and created a shortage of delivery drivers, DoorDash has been able to add more riders by implementing initiatives such as cashback offers to help drivers combat soaring fuel prices.

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The average income for most DoorDash drivers ranges between $15 and $25 per hour. You may also earn more than this if you get plenty of additional income from tips for your orders.

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The lawsuit was brought by the attorney general of Washington, DC, Karl Racine, in November 2019, who said DoorDash led customers to believe their tips were going to delivery workers when the company was actually pocketing the money itself.

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There are a couple of reasons why DoorDash isn't accepting new drivers; if the number of orders compared to drivers is low, they don't need more contractors. Or, perhaps you signed up in an already over-saturated market where there are already hundreds of drivers waiting for orders. Let's take a closer look.

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