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Tech Roundup: DoorDash updates tip model; Recruit invests in blockchain; Instacart adds benefits; AI firm reports funding

August 23, 2019

Human cloud firm DoorDash updated its controversial tip model. Global staffing firm Recruit Co. Ltd., which also owns Indeed and Glassdoor, announced an investment in a blockchain firm. Instacart, a human cloud firm, rolled out a new benefits package for its independent contractor shoppers. Talview, a company that uses AI to examine job candidates, announced a funding round.

DoorDash

DoorDash this week announced a new tip model in a post by co-founder and CEO Tony Xu on Medium. The move comes after a backlash over how the company handled tips, and a month after Xu promised a revised policy in a series of Tweets.

Under the new model, base pay for its delivery contractors will increase and range from $2 to $10 per delivery, with longer, less-popular deliveries receiving a higher base pay. In addition, customers’ tips will go to delivery contractors and the amount DoorDash pays in base pay and promotions will not vary by tip. Customers willalso be able to pay tips either at time of checkout or after the delivery.

The company said delivery contractors should earn more money under the new model.

CNN reported that some are skeptical of the model, saying there is a lack of transparency in the process.

Recruit Co. Ltd.

Recruit announced Thursday an investment in Blockstack, a New York-based company that provides a distributed computing platform using blockchain technology.

“Blockstack offers user-specific storage and multi-purpose authentication systems for users to securely manage highly confidential information such as their personal information, which allows them to have direct ownership and control over that data,” according to Recruit. It says the system is more secure than conventional password-based authentication.

Blockstack was founded in June 2013; its CEO is Muneeb Ali.

The investment was made by Recruit’s Singapore-based RSP Blockchain Tech Fund Pte. Ltd.

Tokyo-based Recruit ranks as one of the world’s largest staffing firms, but it’s not the only large staffing firm looking into blockchain. Earlier this month, Kelly Services announced a strategic partnership with Moonlighting, a privately held US-based on-demand hiring platform that uses blockchain.

Recruit has also been making several investments. Earlier this week, it announced an investment in a company that makes delivery robots.

Instacart

Human cloud, grocery delivery platform Instacart announced new perks for its independent contractor shoppers in a post on Medium.

The perks include its “Stride Benefits Platform” for access to health insurance and financial tools, injury protection insurance to protect the shoppers in the case of an accident (it will include coverage for up to $1 million in medical expenses), free access to Care.com for shoppers to help find caregivers for their families, and a student loan assistance program that provides advice on paying down student loans.

“This is one step in a longer journey to creating new programs and offerings that support shoppers,” according to the post. “By introducing these perks, we hope that we can continue to deliver a holistic experience for the shopper community, enabling shoppers to do their best work and stay engaged as part of the Instacart family for years to come.”

Talview

Talview, a Palo Alto, California-based firm that aims to use AI to examine job candidates, announced a $6.75 million series A funding round. The company provides video interviewing and job-seeker assessments as well as a product that watches job seekers while they take tests to try to root out possible cheating.

The company plans to use the funding to further enhance its AI capabilities.

Funding in the series A round came from Storm Ventures, Inventus Capital, Eileses Capital and Emergent Ventures.