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: DoorDash diversity efforts: 39% of employees hired in 2021 were Black or Latino

DoorDash Inc. significantly increased diversity in its employee workforce last year, the company said Tuesday in its first report on environmental, social and governance efforts, though it says it has yet to reach its ultimate goals for representation by race and gender.

DoorDash
DASH,
-5.68%

said 46% of the employees it hired last year were underrepresented people of color (which it defines as those who do not identify as white or Asian, or are two or more races), up 12 percentage points year-over-year, with 39% of those hired identifying as Black or Latino. As a result, as of the end of 2021, some 36% of the San Francisco-based company’s U.S. workforce were underrepresented people of color, up 7 percentage points from the year before. People of color who are women and nonbinary comprised 28% of the delivery company’s U.S. workforce, up 4 percentage points.

DoorDash does not consider the more than 6 million active delivery workers on the platform — who fulfilled 1.39 billion orders by more than 25 million monthly active users globally last year — as employees. Of the delivery workers it calls Dashers, the company said 58% of those in the U.S. were women and 38% were people of color. DoorDash also mentioned that 4% of its U.S. delivery workers were 65 and older, and that 15% were veterans or lived with a veteran.

See: DoorDash will require all employees to deliver goods or perform other gigs, and some of them aren’t happy

As for its leadership, 19% of the company’s managers in the U.S. were underrepresented people of color, up 6 percentage points year over year. And 11% of its U.S.-based leadership team at director level and above were underrepresented people of color.

The company had a total of 8,698 employees worldwide, with 7,729 of them in the U.S., at the end of last year, according to the ESG report. Outside the U.S., DoorDash operates in Canada, Australia, Japan and Germany.

A company spokeswoman confirmed that executive compensation is not specifically tied to diversity goals, though the company noted in its report that leaders and managers have been held accountable for interviewing “diverse candidates” for open roles since 2020.

Investors and consumers increasingly care more about a company’s ESG makeup. Last year was a record year for ESG, with an estimated $120 billion poured into sustainable investments, more than double the $51 billion of inflows in 2020.

Diversity of a workforce and a company’s corporate board falls under the “S” in ESG. The Securities and Exchange Commission is looking into tighter regulations on how ESG metrics are reported.

Read: SEC’s Gensler: Make ESG stock fund labels as clear as fat-free versus whole milk

More specifically in the U.S., the racial and ethnic breakdown of DoorDash employees was: 37% white, 23% Asian, 16% Black or African American, 13% Hispanic or Latino, 6% two or more races, 4% preferred not to say, 1% American Indian or Native Alaskan, 1% other and zero Native Hawaiian or Pacific Islander. Globally, the company’s employee workforce is 53% male, 46% female and nonbinary, and less than 1% preferred not to say.

By comparison, in its most recent diversity report, DoorDash rival Uber Technologies Inc.
UBER,
-2.72%

disclosed the following numbers about its employee demographics: Its 2021 U.S. workforce was 42.2% white, 34.7% Asian, 10.3% Black or African American, 8% Hispanic or Latinx, 4.1% multiracial, 0.3% Native Hawaiian or Pacific Islander and 0.3% American Indian or Alaska Native. By gender, Uber’s global employee workforce was 57.8% men and 42.2% women.

DoorDash also reiterated its goals, first publicly stated by Chief Executive Tony Xu in October when he reported the company’s workforce demographics, to further diversify its employee workforce. Xu also said then that the company had achieved pay equity by gender and race and ethnicity.

By 2025, DoorDash aims to have 40% of its employees underrepresented people of color in the U.S. overall; 10% people of color (which it defines as anyone who identifies as non-white) in technical roles, up from 7%; and 20% people of color in leadership roles of director and above. It also has a goal of 50% women, nonbinary people and underrepresented people of color in new appointees to the management team and board of directors by 2025.

See: DoorDash stock soars nearly 30% on record-high user numbers, Q4 orders

Also: The app-based economy could see key changes in 2022

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