Tipping delivery drivers using their own vehicles

[Ipecac Drano]

I own a pizza delivery service. I pay my driver $5 an hour (less than minimum) and he works 5 hours a day. I have to pay him $25 a day.

I do the ethical thing and pay him $10 an hour and he works 5 hours a day. I now have to pay him $50 a day.

Which is more cost-effective for me, the owner?

So, cost-effectiveness to self overrules ethics toward others?

[Plaidman]

So, cost-effectiveness to self overrules ethics toward others?

It can at times.

Sure, pay the ten dollars an hour. Now place closes because cannot afford to pay the drivers their money. Just isn't making the money for it.

Now employee loses said job, and makes zero money.

Where as before, while horrible pay, can at least have long term commitment.

[blas87]

I love when people stiff or tip really little, using "Well, their employer should PAY THEM MORE!" as their leverage. Yeah, and I bet you wish your employer would pay YOU more, dontcha? Guess what? What you think or believe isn't always the way things go.

You keep believing that, and I hope you enjoy cold pizza that takes an hour to get to your house, and bare minimum service at restaurants.

[chozoghost79]

"I'll tip you next time." I've had only one or two customers make good on that.

[Ladeeda]

I don't like that drivers--or indeed waiters-- are forced to risk their paycheck on the whims of customers who far too often are ignorant or just cheap.

That said, I tip. I tip at least $3 when I get pizza delivered (a VERY rare occurrence, so it's not like I'm going broke over it), at least 20% at a restaurant for good service, a bit more if I'm eating alone.

I don't LIKE the system, and many, many restaurants overseas do just fine without mandatory tipping, but I won't penalize the employee for that.

[Peppergirl]

I don't like that drivers--or indeed waiters-- are forced to risk their paycheck on the whims of customers who far too often are ignorant or just cheap.

That said, I tip. I tip at least $3 when I get pizza delivered (a VERY rare occurrence, so it's not like I'm going broke over it), at least 20% at a restaurant for good service, a bit more if I'm eating alone.

I don't LIKE the system, and many, many restaurants overseas do just fine without mandatory tipping, but I won't penalize the employee for that.

This!!!!

You've summed it up perfectly. Marry me?

[Ladeeda]

This!!!!

You've summed it up perfectly. Marry me?

Ah, damn, why couldn't I have been born a lesbian?

Curse you, Creator! CURSE YOU!!! *fist shakey*

[Plaidman]

I uh, can married both Ladeeda and Peppergirl, and be like that ..male that has to go betweeen the two....? That way nether have to be lesbian. Or something. *Runs*

[Ladeeda]

I uh, can married both Ladeeda and Peppergirl, and be like that ..male that has to go betweeen the two....? That way nether have to be lesbian. Or something. *Runs*

Sorry, dude. Any three-ways with me must be M/F/M, and I'm in charge.

[Peppergirl]

Ah, damn, why couldn't I have been born a lesbian?

Curse you, Creator! CURSE YOU!!! *fist shakey*

Hee. I'm not either, but I get carried away when someone is a good tipper and speaks so eloquently about it.

I uh, can married both Ladeeda and Peppergirl, and be like that ..male that has to go betweeen the two....? That way nether have to be lesbian. Or something. *Runs*

*throws shoe at Plaid as he runs*

[Plaidman]

Sorry, dude. Any three-ways with me must be M/F/M, and I'm in charge.

Fine by me .

*throws shoe at Plaid as he runs*

Gah! Once again I get the boot!

[Racket_Man]

I own a pizza delivery service. I pay my driver $5 an hour (less than minimum) and he works 5 hours a day. I have to pay him $25 a day.

I do the ethical thing and pay him $10 an hour and he works 5 hours a day. I now have to pay him $50 a day.

Which is more cost-effective for me, the owner?

yup you are the typical greedy "I want all the money I can get" type owner, but what about the employee need for "profit" in fact they have expences also but when those expences exceed their income what is your answer then?????

hmmmm I guess your employees and THIER expences are NOT that important to your business. not very cost effective if you have a revolving door for workers. AND the IRS stongly suggests properly compensating those employees for their UNREIMBURSED BUSINESS EXPENCES. most places WAAAYYYY under-compensate their drivers for such expences as vehicle repair and maintenance ie. frequent oil changes, tires, brakes, starters, transmission work and maintenance, front end alignment, etc. now throw in vehicle insurance, excess wear and tear, etc.

I will use myself as a typical example.

on average my company reimbursement is around 22 or 23 cents PER MILE. my vehicle use is about 80% for my job and 20 % for personal use. my expences (as in gas, insurance, licensing, maintenance and repair and allowance for excess wear and tear) for my vehicle average out to 45 cents a mile overall. now 80% of 45 cents is 36 cents. that is a shortfall of 14 cents that COMES DIRECTLY OUT OF MY POCKET. multiply that by 20,000 miles I drive JUST FOR MY JOB and that works out to be around $2800 per year that I am being under compensated.


I have to get my transmission oil changed every year $100 to $200, tires every year $300 to $600, oil changes every 6 weeks $20 - $30 depending on DIY or at a shop, brakes every year $100 to $200 depending on one or both axles needing work, front end alignment at least twice a year because of winter weather and summer construction work, etc.

then there are the unexpected expences $2000 for a blown transmission, new starter $200 - $300, water pump $200, fuel pump $400 - $800 depending on the car, and not counting being involved in accidents

Now another point to bring up is that again the US DOL has rules about tips being used to compensate for Unreimbursed Business Expenses ie. those expenses that are DIRECTLY related to the job but are not part of the employer WAGE compensation.

in addition I assume (as most business do) that other work is required of said employees other than "just delivering food". well the US Dept of Labor has rules about that too. if that tipped driver spends MORE than 20% is their time performing non-tipped related work such as food prep, cleaning, dishes, trash removal, maintenance, etc. the employer is REQUIRED BY LAW to pay that tipped employee the full FEDERAL minimum wage.


See this DOL link for DOL rules



$4 to $5 is the "average" hourly wage the large chains are currently paying their drivers (they would go lower if they could) and they compensate their drivers anywhere between 75 cents to $1.50 per run no matter the mileage of each run (2 blocks or 15 miles)


OH and you can mostly forget about making your delivery drivers Independant Contractors. The IRS AND DOL has a test for that and most delivery drivers will not make the grade ie an employee is still an employee by any other name

Independant contractor guidelines for the IRS and DOL

I don't like that drivers--or indeed waiters-- are forced to risk their paycheck on the whims of customers who far too often are ignorant or just cheap.

That said, I tip. I tip at least $3 when I get pizza delivered (a VERY rare occurrence, so it's not like I'm going broke over it), at least 20% at a restaurant for good service, a bit more if I'm eating alone.

I don't LIKE the system, and many, many restaurants overseas do just fine without mandatory tipping, but I won't penalize the employee for that.

I love you sooo much Ladeeda

[Greenday]

So, cost-effectiveness to self overrules ethics toward others?

LOL Yes. That''s pretty much the definition of modern day business ethics.

[Ladeeda]

You know, reverting back to something I tossed out without really thinking, restaurants overseas in places tipping is not expected/considered insulting.

I'm not a traveler, so I can't actually name any, but how do THOSE places stay in business when American companies claim they could not?

[Greenday]

In those places, you only tip for especially exceptional service. That's also because they pay their employees more than minimum wage.

As to how do those businesses survive? I don't know, I've never been over the pond. I don't know what prices are like, whether they are altered to provide a higher revenue.