[dahdum]

The crazy thing is with all those fees, service charges, and markups they are still just barely contribution margin profitable.

Amazon Prime Now / Restaurants guarantees a delivery driver a certain wage (say $XX/hr, depends on market). However what that really means is while your tip is technically going to the driver, until they exceed $XX/hr, you're just saving Amazon from having to pay them instead. I still tip, but my generosity went down when I realized that most of my tip is really just a handout to Amazon.

[lazerpants]

I think NY state forced them to hand over tips to drivers (at least they did for GrubHub/Seamless), but I don't know if that has changed in other markets.

[dawnerd]

Guess that explains why my amazon drivers said they always preferred cash...