When major gig food delivery platforms expanded into non-food delivery, they introduced a new variable: tipping. Drivers still expect tips, but customers often don’t think to add them when food isn’t involved. The result? Longer wait times, higher rates of damaged items and a poorer overall experience — all outcomes that ultimately reflect badly on the brand.

That’s why retailers must understand the nuances of the customer experience when choosing last-mile delivery strategies. This includes how tipping factors in, how delivery platforms compensate drivers and how those choices ultimately shape the customer experience.

The rise of tipping

Many of the big-name crowdsourced delivery platforms rely on customer tips to make gig work appealing enough to attract independent drivers. So when drivers are choosing between a restaurant pickup with a tip and a non-food gig with no tip offered, they tend to choose the food.

That means non-food gigs often get the lowest level of service. A recent survey by Roadie and Studio found that retailers that used last-mile solutions that deliver both food and traditionally non-tipped goods experienced particularly poor on-time delivery and damage rates.

This model is proving unpopular with customers and independent drivers alike. Nearly nine in 10 Americans think tipping culture has gotten out of control, according to a WalletHub survey. Many have grown resentful of the rising prevalence of tip requests.

A better way

Roadie designed its model around fair, up-front driver earnings rather than a tip-dependent structure. The difference is apparent in more reliable, on-time and damage-free deliveries, all of which matter most to the customer.

Tipping isn't required or factored into the base earnings like other platforms. While tip-reliant platforms may offer a lower up-front price, the true cost often proves much higher in lost customer loyalty and repeat business.

Consumers want less tipping, not more, and don’t want their delivery quality to be dependent on tips. It can also be difficult to present a consistent tip to drivers. This means that drivers incentivized by tips will prioritize some deliveries over others, which hurts the brand experience. It’s beneficial for both drivers and retailers for drivers to receive fair earnings up front instead of asking consumers to supplement low earnings with tips.

That’s why customer tipping, while still offered and supported, isn’t standard at Roadie. The Roadie network of independent drivers can choose the type of deliveries they overwhelmingly prefer while receiving clear earnings. If a sender, or their customer, provides a tip, the driver still receives 100% of it. That translates into higher-quality deliveries that satisfy a brand’s customers and keeps them coming back.

Tipping is unpopular with consumers and can negatively impact non-food delivery. Brands that care about their customer experience should ensure tipping is not part of their last-mile experience.