The dude I talked to last week said the first $4 or so of your tip reduce the “base pay” that the company pays the driver. Apparently the way it works is like this:
You place an order with say $4 delivery fee, $3 service charge, and $6 tip.
The driver is sees the order on his/her phone with a guaranteed pay of like $2.50. They can’t see the tip amount or the cost of your order. Declines to take the job.
Some other driver sees the order with guaranteed pay rate of like $2.75. Declines.
etc until eventually it shows a driver something they think is worth taking, like $4 or $5. The driver accepts.
Driver picks up your order, delivers it.
After the delivery is completed the app unhides the details of their pay. The company always contributes at least the minimum of like $2.50 plus your tip. But if you don’t tip enough to match the “guaranteed pay” the driver was offered, the company will match the guaranteed pay.
So if the driver might have accepted a job with guaranteed $4.
You paid the $4 delivery fee, $3 service charge, and a $6 tip.
The driver’s final payment is $2.50 from the company and your $6 tip for a total of $8.50.
~Max