Walmart+ delivery driver tipping? Really??

[youbet]

That's $20/hr before expenses. In my volunteer tax prep role, I usually do taxes for several uber and door dash drivers each year. The bottom line on Sched C, even for people doing this nearly full time, is almost always in the 4 figures and they are all earning so little they qualify for earned income credit.

They feel like they're making a lot of money because they get a nice deposit in their bank account every month, but in actuality their expenses are very high. The ones who do deliveries make out a little better on taxes than the ride share guys because the standards for what type of car they can drive are lower, but the ride share guys have more opportunity for cash tips which may not all end up on their tax returns.

It would be interesting to have some good data on the market for these jobs. Are the hiring companies actually finding enough folks willing to do the work with the compensation they are offering?

I noted that the recruiting literature for the Walmart+ delivery drivers emphasized non-cash incentives:

This is an easy side hustle that you can pick up as a part-time gig alongside your studies or another job. You can also do it full time, if you prefer.

Working as a Spark Driver offers a lot of flexibility. You can control when, where, and how much you drive.

Plus, you can work from the comfort of your own car, blasting music as loud as you want. Sounds good, right?

It sounds like they're competing for the same folks who might otherwise be working a few hours a week delivering pizza's, etc.

 

[aaronc879]

Are you saying some get paid nothing but tips? This does not compute...

Door Dash and similar get paid just a few bucks per delivery. Their Door Dash pa basically just covers gas. They need to get tips to actually make any money. I believe the Walmart(Spark) drivers are basically the same, maybe slightly better off.

 

[aaronc879]

That's $20/hr before expenses. In my volunteer tax prep role, I usually do taxes for several uber and door dash drivers each year. The bottom line on Sched C, even for people doing this nearly full time, is almost always in the 4 figures and they are all earning so little they qualify for earned income credit.

They feel like they're making a lot of money because they get a nice deposit in their bank account every month, but in actuality their expenses are very high. The ones who do deliveries make out a little better on taxes than the ride share guys because the standards for what type of car they can drive are lower, but the ride share guys have more opportunity for cash tips which may not all end up on their tax returns.

If they make "4 figures" what do they do for health insurance. The don't make enough to qualify for ACA but some may not qualify for Medicaid either. I will make under the ACA minimum but don't qualify for Medicaid in my state.

 

[harllee]

I am glad to give a good tip to the Walmart delivery drivers (or any delivery driver) if I actually get what I ordered in a reasonable time. But my experience with grocery deliveries has been overall bad--Walmart, Instacart, Whole Foods etc. I tried several different ones when DH had knee replacement and I hurt my back helping him. It was a bad time for me, I really needed grocery delivery I could depend on. But none of them worked. I did not get half the stuff I ordered. One time I got a bunch of stuff I did not order and did not want and was charged anyway and had trouble getting a refund. A couple of time I never received the delivery at all. I don't want to tip if I don't get what I ordered.

 

[youbet]

I am glad to give a good tip to the Walmart delivery drivers (or any delivery driver) if I actually get what I ordered in a reasonable time. But my experience with grocery deliveries has been overall bad--Walmart, Instacart, Whole Foods etc. I tried several different ones when DH had knee replacement and I hurt my back helping him. It was a bad time for me, I really needed grocery delivery I could depend on. But none of them worked. I did not get half the stuff I ordered. One time I got a bunch of stuff I did not order and did not want and was charged anyway and had trouble getting a refund. A couple of time I never received the delivery at all. I don't want to tip if I don't get what I ordered.

If I found myself in that kind of situation, I'd try to locate someone who would pickup my groceries from a curb-side pickup I'd arranged and bring them to my house.

You order what you want from any local store who does curb-side. You pay the teenager across the street $20 to go pick them up and bring them to you.

You could keep this to a minimum by ordering non-perishables to be shipped to you.

Stores, well at least Walmart, seem to be pretty good at picking your order and bringing it to the curb. The use their own full time employees. The employees have the help of computerized routing through the store and they pick several orders at once. They aren't just wandering around the store looking for your stuff.

 

[cathy63]

If they make "4 figures" what do they do for health insurance. The don't make enough to qualify for ACA but some may not qualify for Medicaid either. I will make under the ACA minimum but don't qualify for Medicaid in my state.

Some of them drive as a side gig and get health insurance through their primary employer or their spouse's employer. Some get ACA plans and just estimate their income to be higher than the final numbers end up. Their gross business income can be $40K+ even if their final net is more like $9K, and most of the people I deal with do not grasp that kind of math at all. To them, it's "my 1099-Ks add up to $42K, so that's what I make as a driver".

We also do have expanded Medicaid in my state, and especially since the pandemic started a lot more people qualified for it.

 

[purplesky]

Record nominal profits or record real (inflation adjusted) profits?

Major corporations will make Record profits despite inflation by price gouging.

Move the profit margin goalposts and take back frontline worker wage gains.

Because they can.

 

[ivinsfan]

Personally, this sounds like a huge hassle to me. The woman 2-doors down from me orders EVERYTHING delivered to her home and she complains about the deliveries on a regular basis. She's healthy, young, doesn't work, has no kids, and there is a Walmart and 2 grocery stores within 5 miles of her home. I've been in many Walmart's before. I haven't run into too many employees I'd trust picking out my groceries and delivering them to my home. I realize there are certain situations where an individual cannot get out of the house and shop on their own. If I ever get to that point I can assure you Walmart will not be delivering my groceries!

Mike

What? How do manage to deem large groups of people untrustworthy? Perhaps your neighbor has a touch of agoraphobia and doesn't want to tell you about it. Maybe she has a rare immune disease. Or like in the movies is hiding from an abusive partner. I thought we would have all learned by now we can't judge people by looking at them or where they work.



Who would be delivering your groceries and essentials?

 

[ivinsfan]

Door Dash and similar get paid just a few bucks per delivery. Their Door Dash pa basically just covers gas. They need to get tips to actually make any money. I believe the Walmart(Spark) drivers are basically the same, maybe slightly better off.

This seems like a business model that wouldn't work for anyone...perhaps the idea we can get restaurant meals and fresh food delivered isn't practical in today's world.

 

[ivinsfan]

If I found myself in that kind of situation, I'd try to locate someone who would pickup my groceries from a curb-side pickup I'd arranged and bring them to my house.

You order what you want from any local store who does curb-side. You pay the teenager across the street $20 to go pick them up and bring them to you.

You could keep this to a minimum by ordering non-perishables to be shipped to you.

Stores, well at least Walmart, seem to be pretty good at picking your order and bringing it to the curb. The use their own full time employees. The employees have the help of computerized routing through the store and they pick several orders at once. They aren't just wandering around the store looking for your stuff.

After 2 and half years I'm still flummoxed by the fact curbside pickup is literally the best thing they do at Walmart. Whoever oversees and implemented that program for Walmart is a genius.

 

[youbet]

After 2 and half years I'm still flummoxed by the fact curbside pickup is literally the best thing they do at Walmart. Whoever oversees and implemented that program for Walmart is a genius.

Their strength in logistics and procurement is Walmart's saving grace. You don't have to like the Waltons to understand that procuring and delivering stuff to consumers is something they're damn good at.

I agree, whoever is "hands on the wheel" with their curb-side program is one smart cookie.

 

[almost there]

Yes, in a service based economy tipping is required. And no, I don't care for it. But here we are.

 

[JJpop]

Everything thing today is tip, tip, tip.
I had a lot of low paying jobs in my life and I have never received 1 cent in tips.

Are we suppose to tip when picking up at McDonalds and Taco Bell and the like?

Do we tip the cashier when we shop at Target?

How about at the gas station, the guy inside?

How about the Walmart greeter?

The bank teller?

Very tired of having it thrown in my face.

If someone in a situation does something beyond the ordinary that is one thing, if you choose.

I ordered some empanada’s at the local place last week and when ordering and paying before they were made, I am looking at the screen with 10%, 15% 20%.
So instead of paying 4.75 per I am suppose to give the owner 5.50 per for what reason? It is a take out place. There are no servers.

The Wal Mart driver deserves a tip but the Walmart worker in the store does not get one.

 

[Northforker]

The entire service economy norms have been turned upside down by the insane
minimum wage demands for jobs that costs less than half that in the recent past. Now that almost everybody is making $15/hr, I am for tipping almost nobody like the rest of the western world. A tip jar at a fast food counter with no traditional wait staff seems like semi passive extortion to me. Why am I clicking my food order into a screen that ends with how much would you like to tip? Who am I tipping? It's a screen? Maybe everyone in the service industry should be required to wear their wage rate on their name tag?

 

[FindingForward]

After 2 and half years I'm still flummoxed by the fact curbside pickup is literally the best thing they do at Walmart. Whoever oversees and implemented that program for Walmart is a genius.

Cannot agree more. WM curbside has been an outstanding service for me....and the fact that it's free to boot - no markups or service charges - is a blessing. I love that you can change your order as often as you want, right up to a few hours before pickup.

Their shoppers are on the ball big time-- I can count on one hand (with digits left over) how many times anything has been wilted or in less than great condition.

 

[aja8888]

Cannot agree more. WM curbside has been an outstanding service for me....and the fact that it's free to boot - no markups or service charges - is a blessing. I love that you can change your order as often as you want, right up to a few hours before pickup.

Their shoppers are on the ball big time-- I can count on one hand (with digits left over) how many times anything has been wilted or in less than great condition.

Same here, we have been using it since it started.

 

[FindingForward]

The entire service economy norms have been turned upside down by the insane
minimum wage demands for jobs that costs less than half that in the recent past. Now that almost everybody is making $15/hr, I am for tipping almost nobody like the rest of the western world. A tip jar at a fast food counter with no traditional wait staff seems like semi passive extortion to me. Why am I clicking my food order into a screen that ends with how much would you like to tip? Who am I tipping? It's a screen? Maybe everyone in the service industry should be required to wear their wage rate on their name tag?

I agree - someone earning 15/hr base shouldn't also get 25% of my check as a standard tip- especially when I'm ordering wine or other high ticket items that aren't any extra effort to bring to the table. Unless the service is genuinely above average.

But please remember that the number of servers NOT making anywhere near $15/hour is vast. I know you were likely referring to counter workers, not servers.

But many people today just reading clickbait headlines don't realize that there are still many states - including mine - where "tipped wages" are still far lower than regular minimum wage. And it's 10x worse for those waiting tables at lower end places where 15% tip on coffee and a 2-egg special is a borderline insult given how hard the servers work - back and forth coffee refills, water refills, etc.

This chart shows the crazy quilt of hospitality wages by state. Really wish this was standardized at a federal level vs up to each state. Would make life much easier for customers.

https://www.dol.gov/agencies/whd/state/minimum-wage/tipped#foot1

 

[mickeyd]

TIPS are for after service is performed, not prior to service. Advance TIP should be $0 IMHO.

 

[oiseux]

I have used the Walmart+ service as it is free on my credit card. But the results have been very uneven. Today once again the order was missing items. I've received bags from someone else's order, so I assume today someone got part of my order. They are very good about refunds. Once i have to track down my order to a neighbor another time it was impossible. The good thing is the pricing is NOT jacked up (like Instacart/Costco and others). The bad thing is the consistency of service. These problems don't exist with Amazon/WF because their scanning methodology and clear labeling eliminates a lot of issues. Oh and I generally tip 10 to 15% (or less for Amazon Fresh)

They use two models: doordash for final delivery (where tipping is essential) and a new service being deployed that uses Walmart employees and prohibits tipping. They have not launched the latter in my area but I'll likely switch to that, once it is available.

 

[CaptTom]

TIPS are for after service is performed, not prior to service. Advance TIP should be $0 IMHO.

This was always my thought, too.

But I once pulled into some remote port late, and we decided we wanted to order pizzas. There was only one place open for delivery, and we were far from them. When we called they complained about how busy they were, and couldn't guarantee how long it might take. The crew member placing the order added a very large tip, paying in advance by credit card.

The delivery came shortly thereafter. You can't argue with success.

 

[iloveyoga]

These posts make me happy (or lucky) that I have received good service from Walmart delivery. I've done it for several years with very few issues. And as mentioned they are very good about refunds if something is wrong. I suppose it has to do with the Walmart providing the service.

I always do the standard tip because I want my order to be picked up (not sure if they can see it ahead of time). If all is well, I might increase it afterwards, they do give you this option.

 

[Ready-4-ER-at-14]

Majority of our deliveries are fine, some not, some delivery persons fault as in delivered to 237 anywhere instead of 235 anywhere.

I tip nice at restaurants but expect the server to make my order right and check it before delivery or at least fix it when I point out my cashew salad has no cashews. Grub hub delivers a sealed bag, as does Walmart, UPS, and Amazon. Non of the delivery people take a wrong item back at time of delivery or wait for the order to be verified, or go back to get the right items.

To me this is the difference between getting plain black coffee or an expresso with the Mona Lisa drawn in foam. One is just doing the job, other is making it pleasant for me.

Another way to look at it as a retiree, per google search "As of March 2022, the average check is $1,536.94, according to the Social Security "Administration and that is maybe $9.60 an hour if considered full time pay.

Maybe the expectation of seniors tipping for marginal added services is unreasonable for the majority of people? It's amazing the different way we are treated in low cost of living areas as customers, invariably the cashier finds some discount for seniors that we had not requested and applies it. The expensive areas not so much.

 

[healthyandfun]

Late to this thread. . . I never used delivery of groceries before the pandemic. I’ve grown to like it. I use Walmart delivery about once every three weeks and make quick stops to pick up items on occasion. It is not a perfect system, but then what is? After using it for awhile, I find it works best to have the first delivery of the day on an order put in the previous evening. Fill rate is better and no errors. Sometimes I get things I didn’t order. I used to report them, but they simply tell you to keep, donate, or discard them. Refunds happen on occasion and those are handled quickly. Substitutions are sometimes unusual, but they do give a time frame to decline them. I do tip well and a little more since gas prices have risen. Wouldn’t quibble over the driver receiving a tip when I think of what they are doing for me. All in all, I am thrilled to have this service, thank the drivers profusely if I see them, and plan to continue.

 

[iloveyoga]

Late to this thread. . . I never used delivery of groceries before the pandemic. I’ve grown to like it. I use Walmart delivery about once every three weeks and make quick stops to pick up items on occasion. It is not a perfect system, but then what is? After using it for awhile, I find it works best to have the first delivery of the day on an order put in the previous evening. Fill rate is better and no errors. Sometimes I get things I didn’t order. I used to report them, but they simply tell you to keep, donate, or discard them. Refunds happen on occasion and those are handled quickly. Substitutions are sometimes unusual, but they do give a time frame to decline them. I do tip well and a little more since gas prices have risen. Wouldn’t quibble over the driver receiving a tip when I think of what they are doing for me. All in all, I am thrilled to have this service, thank the drivers profusely if I see them, and plan to continue.

I meant to add this...I always shoot for the first delivery window of the day. I wonder if that helps.

 

[healthyandfun]

Many stores restock overnight or very early morning. If I put in an order in the evening for first delivery the next morning, there is less time for others to purchase what is on the shelf and with the restocking overnight there is a better chance of getting items as well. Also, if there is a need for a substitution, there will probably be something comparable to select. I also try to pick a weekday delivery instead of Saturday or Sunday. I have made a list of everything I buy and check that before finalizing an order. Surprisingly, I usually purchase the same 45 items or so.