Paper Number
ICIS2025-1735
Paper Type
Short
Abstract
The platform economy faces ongoing challenges in aligning gig worker incentives with service quality and customer satisfaction. In response to New York City’s minimum wage legislation for app-based delivery workers, DoorDash shifted its tipping model in December 2023 from checkout to post-delivery. This study examines the behavioral and operational impacts of this change, focusing on tipping behavior, order volume, and service quality. Using game-theoretic modeling and econometric analysis, we find that the post-tipping policy leads to lower tip amounts, reduced order frequency, and heightened uncertainty in service quality due to diminished upfront motivation for Dashers. Our findings underscore the role of information asymmetry—particularly the absence of pre-service tip visibility—in shaping outcomes. By showing how changes in the timing of incentive payments alter stakeholder behavior, this study advances gig economy research and offers practical insights for platform incentive design under evolving regulatory environments.
Recommended Citation
Qu, Jiajia; Bao, Chenzhang; and Zhang, Wen, "Impact of Post-Tipping Policy on Online Delivery Platform" (2025). ICIS 2025 Proceedings. 7.
https://aisel.aisnet.org/icis2025/sharing_econ/sharing_econ/7
Impact of Post-Tipping Policy on Online Delivery Platform
The platform economy faces ongoing challenges in aligning gig worker incentives with service quality and customer satisfaction. In response to New York City’s minimum wage legislation for app-based delivery workers, DoorDash shifted its tipping model in December 2023 from checkout to post-delivery. This study examines the behavioral and operational impacts of this change, focusing on tipping behavior, order volume, and service quality. Using game-theoretic modeling and econometric analysis, we find that the post-tipping policy leads to lower tip amounts, reduced order frequency, and heightened uncertainty in service quality due to diminished upfront motivation for Dashers. Our findings underscore the role of information asymmetry—particularly the absence of pre-service tip visibility—in shaping outcomes. By showing how changes in the timing of incentive payments alter stakeholder behavior, this study advances gig economy research and offers practical insights for platform incentive design under evolving regulatory environments.
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19-SharingEconomy