More than a year has passed since COVID-19 began to ravage our healthcare system, devastate our economy, and lay bare how systemic racism has contributed to the suffering of communities of color. The pandemic’s disproportionate impact on the mental, physical, and economic health of communities of color was felt nationwide. Black-owned businesses saw revenue drops of over 50% and, in early 2020, a more than 40% closure rate. Even as the recovery began, unemployment for Black Americans hovered just below double digits. Challenges remain to achieving an equitable recovery in the areas of health, education, jobs, and for Black-owned businesses.
It’s important that our nation recover from the pandemic in a just way, rooted in equity and access so that every community, especially communities of color, can thrive. The road to an equitable recovery includes earnings opportunities that help people support themselves and their families by providing supplemental income and connecting local businesses with customers in new ways so they can compete in the modern economy.
I learned from my mom that running a small business depends not only on the grit and determination of the people who work there, but also on the support of the community to keep its doors open. I immigrated to this country at the age of five, and growing up, I helped my mom as a dishwasher in the restaurant where she worked. I started DoorDash to help small businesses and people like my mom be able to reach customers through delivery instead of turning down orders because they couldn’t fulfill them.
Local businesses depend on platforms such as DoorDash now more than ever. On-demand logistics platforms help local businesses grow and provide earnings opportunities for people who want to be their own boss, start their own business or make some extra money on the side. For individuals who traditionally face barriers to employment, platforms like DoorDash provide flexible work arrangements and allow them to start earning money quickly while ensuring businesses can reach their customers. Long before 2020, workers and businesses were benefiting from the gig economy and generating billions in economic activity. Then the pandemic hit.
Between March and September 2020, with unemployment levels at historic highs and an uncertain future for many industries, 1.9 million new couriers (known as “Dashers”) joined the DoorDash platform. Eighty-six percent (86%) of Dashers reported facing some level of financial hardship during that same period, including the nearly half who said someone in their household had lost a job or had their wages reduced. Being able to earn income at the touch of a button has proven to be invaluable, and we’ve heard that this is especially true for Dashers of color. Dashers who live in zip codes with above average Black or Latino representation earned $2.1 billion in that same period.
Gig economy workers are as diverse as the communities where we live. They are parents, students, retirees, caregivers, and people transitioning to new jobs. Four out of five Dashers say that delivering with DoorDash is not their main source of income, which is why, on average, they deliver for just four hours per week. Now, we have an opportunity to rethink our current labor systems and improve how today’s workers gain access to earning opportunities and the protections and benefits that are right for them.
We need to preserve access to flexible, independent work for all workers, and in particular those who are facing barriers to employment, while also providing a new and fair benefits framework. This framework should be portable so a person can move across any gig economy platform, proportional so that benefits are equal to the time a person puts in, and flexible to suit individual needs. In California, where one version of this model was implemented, we’ve seen increased earnings for Dashers, while they maintain the independence they value and are offered new benefits and protections
In addition to providing immediate earnings opportunities, DoorDash is proud to partner with the National Urban League in launching the Financial Empowerment Program. This first-of-its kind program is designed to help workers - including Dashers - attain new job skills and entrepreneurial success and build generational wealth through financial literacy training, educational funding, job programs, and more. Empowering gig economy workers from underrepresented communities and helping them access tools that can place them on a pathway to financial security is part of the responsibility we have to take action and create what we want to be seen in the world around us.
The need for flexibility extends to merchants too. During the pandemic, many businesses faced the prospect of closing their doors. Having access to on-demand delivery and logistics through DoorDash proved to be a lifeline for local merchants who needed to pivot to takeout and delivery when shelter-in-place orders were instituted. We’re proud that the odds of staying open during the pandemic are eight times more likely for restaurants on DoorDash, and 65% of restaurants say they were able to increase profits during COVID-19 because of DoorDash and the Dashers who power our platform.
In addition to creating pathways to participate in the online convenience economy for local merchants, we’re proud of the training and grants provided through our Main Street Strong Accelerator program as part of our five-year, $200 million Main Street Strong Pledge. Black-owned businesses on DoorDash are also able to access matching loans through our partnership with Kiva. We support entrepreneurship and access to opportunity for merchants in underrepresented communities by connecting them to customers, highlighting them on our platform, connecting them to small business advising, and welcoming them to our Main Street Strong Accelerator program annually.
DoorDash’s mission to empower local economies has never changed, but the conditions that enable local economies to thrive have evolved faster than any of us could have anticipated. If we’re going to lift up underserved communities and promote the ability to build a secure financial future, the future of work must be based on where we are going instead of where we used to be.
