📊 DoorDash's Pennsylvania Pilot Program
DoorDash launched a pilot program in Pennsylvania in April 2024, offering 4% of drivers’ income as benefits payments. This program, running until March 2025, aims to address concerns about gig worker benefits. So far, DoorDash has distributed $802,722 to 4,400 drivers, averaging about $200 per participant. The payments are managed via Stride, allowing drivers to allocate funds for health plans, paid time off, or savings. Most opted for emergency savings or time off, according to the company.
📈 Majority Choose Flexibility Over Employment
More than 70% of surveyed drivers said they prefer remaining independent contractors, and this rose to 86% when benefits were added. Max Rettig, DoorDash’s VP of Public Policy, emphasized that flexibility remains a key driver for gig work. The pilot only enrolled 23% of eligible drivers, who were generally older, more experienced, and made more deliveries than non-participants.
🛡️ Regulatory and Competitive Implications
Companies like DoorDash, Uber, and Lyft are under pressure to improve gig worker benefits. The “independent contractor-plus” model is gaining traction, combining flexibility with minimum pay standards. This approach reduces companies’ risks of lawsuits over worker classification. DoorDash expects new legislation in Minnesota, Pennsylvania, and Wisconsin requiring gig-economy companies to fund portable benefits accounts. Lyft recently launched a similar program in Utah.
🚀 Future of the Gig Economy
Despite the promising pilot, awareness remains low. Out of 250K active couriers in Pennsylvania in 2023, only 19,113 met eligibility requirements, and 23% enrolled. DoorDash hopes the report informs policymakers on balancing flexibility with meaningful benefits. With ongoing experiments and legislative discussions, the gig economy may see widespread adoption of portable benefits.
Should gig workers get portable benefits or full employment?
