DoorDash gripes with Walmart are meager tips, long waits

Third-party delivery firm DoorDash is taking steps to address what it says are frustrations from independent drivers toting Walmart merchandise and grocery orders, including low customer tips, the company confirmed to Reuters.

The world’s largest retailer in recent years has bolstered its partnerships with same-day third-party courier firms, including DoorDash, to reach consumers in and around scores of U.S. cities and better compete with Amazon.com. The push came as Walmart ended initiatives to use Uber Technologies Inc and Lyft Inc drivers, and struggled with using its own employees, to deliver packages.

On Feb. 26, DoorDash surveyed its more than 1 million independent drivers, asking them to share “experiences” about deliveries for Walmart. “We heard your feedback. Make Walmart orders better,” the survey says, according to a version Reuters has seen that DoorDash confirmed as authentic.

As DoorDash expands beyond its urban restaurant roots to the delivery of everything — from groceries to gardening tools — across the country, it has run into etiquette issues. Americans who are used to tipping for burgers or burritos do not always think to tip for delivery of household goods or pet food. After all, they do not tip

for postal, UPS or Amazon deliveries.

CEO Doug McMillon last month said delivery is key to its Walmart+ subscription program, launched in September. The program, which costs $98 a year, offers unlimited grocery and merchandise delivery on orders over $35 from Walmart stores.

“Logistics and delivery will continue to be a bit of a pain point for Walmart because they view it as a place where they could potentially reduce costs,” said Chad Oviatt, director of investment at Walmart shareholder Huntington Private Bank.

Partnering with Walmart has helped DoorDash take market share from rivals including Grubhub Inc and tap into new pockets of demand for delivery in suburban areas, where many Walmart stores are located.

But some DoorDash drivers complain of heavy loads and long waits for picking up parcels at stores. Customer tips are another sore point, especially for drivers who are used to getting bigger tips on restaurant orders, several people said.

After her day job, DoorDash driver Kat Ensey, 53, makes money delivering sandwiches and sodas outside of Chicago. Bringing Walmart orders to shoppers’ homes is less profitable, she said. Ensey, standing 5 feet-2-inches tall, recalled once hauling 13, 30-pound bags of soil from her car through a muddy yard to a Walmart customer’s back patio. DoorDash paid her $4 for the delivery. The customer did not tip.

DoorDash said it approached Walmart last year about allowing customers to add a tip to their order before they finalize a purchase. A spokeswoman for Walmart said this was “a great idea” and changed its app in October to allow online shoppers to tip before they pay for their order. Since that move, she said, 75% of Walmart shoppers allocate tips.