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DoorDash couriers struggle to secure COVID sick pay, get back to work during Omicron surge

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A COVID-assistance policy at DoorDash Inc is frustrating some couriers who told Reuters the food-delivery company sidelined them for as long as a month while infections caused by the Omicron variant of the coronavirus flared, costing them much needed income.

DoorDash rolled out its COVID-19 Financial Assistance Program in March 2020, offering a driver who tests positive for COVID, or whose housemate tests positive, a one-time payment equal to their average earnings over the previous two weeks.

“Upon submitting a claim for health-related COVID-19 financial assistance, your Dasher account will be suspended to protect the DoorDash community,” DoorDash said in a March 12, 2020 email to its drivers announcing the program.

But six DoorDash couriers told Reuters that during the recent Omicron surge, DoorDash delayed making the assistance payments and suspended drivers’ DoorDash accounts for prolonged periods, exacerbating the financial strain on gig workers who deliver food for a living.

When Cincinnati-based Doordash driver Josh Murphy notified the company about his roommate’s positive COVID-19 test result on Dec. 21, DoorDash immediately deactivated Murphy’s account for over three weeks – well beyond his 10-day quarantine period.

Murphy said he missed work for 17 days that he would normally be out delivering. He did eventually receive a check for $622 – but he estimates the prolonged account deactivation amounted to a $1,000 net loss, even after the payment.

“I regret asking for the assistance, even though I needed it to pay rent,” Murphy said.

A spokesperson for San Francisco-based DoorDash said in most cases medically-cleared drivers, known as Dashers, are able to get back online within 24 hours.

“When a Dasher submits a qualifying claim, our team works quickly to process their two weeks’ of earning replacement and suspend their Dasher account to protect the DoorDash community,” she said.

DoorDash has dedicated specific team members to process requests for financial assistance and reactivations after Dashers are medically cleared. The company has added additional team members to that group since the start of the pandemic, she noted, adding that significant delays are not widespread.

DoorDash declined to specify the number of couriers who have requested financial assistance since the start of the pandemic. DoorDash counted nearly 3 million people who provided services, or “Dashed,” during the third quarter, earning over $2.8 billion for drivers. The company reports fourth-quarter results on Feb. 16.

‘MY ONLY SOURCE OF INCOME’

Getting financial assistance or paid sick leave for a COVID-related absence is especially hard for gig workers who lack employee benefits.

Uber Technologies discontinued its COVID financial assistance policy for drivers in August of 2021. Lyft, Grubhub, and Instacart still provide COVID sick pay and, like DoorDash, temporarily suspend workers’ accounts after they request financial assistance, according to company spokespeople.

“Nobody forces (gig economy companies) to support the workers, because we’re not employees,” said Gustavo Ajche, a DoorDash courier in New York City and member of labor organization Los Deliveristas Unidos.

App-based delivery companies treat couriers as independent contractors. DoorDash agreed in November to pay more than $5 million to settle an investigation by San Francisco into alleged labor law violations. The city alleged DoorDash was violating its healthcare benefit and paid sick leave laws by misclassifying workers as independent contractors, rather than employees.

Complaints among DoorDash couriers about account suspensions and delays increased in late 2021 with the rise of Omicron, according to social media posts.

Chris Lewis, of Long Beach, California, requested COVID financial assistance on Jan. 4. Emails seen by Reuters show he did not receive a response from the company asking him to verify his positive COVID test until Jan 18.

Lewis, who has already recovered from COVID, finally found out he is eligible for financial assistance on Jan. 28.

Allie, a DoorDash driver in the Minneapolis suburbs, submitted a request to the company for COVID financial assistance when she tested positive just before Christmas. Her DoorDash account has been suspended for over four weeks, and she has yet to receive any sick pay, which she estimates amounts to $2,000 in lost income.

“I do not wish to proceed with the financial assistance,” she wrote in an email to DoorDash’s support team on Jan. 14, “as I am losing more money by not dashing and this is my only source of income.”

 

(Reporting by Danielle Kaye; Editing by Vanessa O’Connell and Bill Berkrot)

Business

Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

The Canadian Press. All rights reserved.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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