DoorDash jumps into ultra-fast delivery --- and directly employing delivery workers

DoorDash DASH, +2.43% on Monday began offering 10- to-15-minute deliveries in the New York City neighborhood of Chelsea, and will soon be followed by other launches as DoorDash seeks to mimic services offered by GoPuff and other younger rivals that are challenging the nation’s leading delivery app. Employee couriers will do the work, a different approach for a company that has spent millions fighting to continue classifying its millions of delivery workers as independent contractors.

DoorDash delivery workers, which the company calls Dashers, pick up food and other goods from restaurants and stores and are paid per delivery, not by the hour. Couriers for the new ultra-fast offering will be paid hourly, starting at $15 an hour, not including tips. DoorDash will use micro-fulfillment centers it calls DashMarts as hubs for the faster deliveries. The company first opened DashMarts last year and now has 25 of them across the country, including the Chelsea DashMart. They carry more than 2,000 items, the company said, including fresh and frozen groceries, local products, snacks, and more.

A mix of 60 part-time and full-time employees per location will have a set schedule and be eligible for some benefits, and those who work at least 30 hours a week will be eligible for health benefits, a company spokeswoman said.

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