My understanding is that
- DD provides a guaranteed wage of $1 per delivery, similar to a restaurtant's "under minimum wage" wage.
- DD provides a "you will make at least this much" rate. This is a parallel to normal minimum wage
- If the (<tip> + $1) is not at least <this much>, DD covers the difference
- If the (<tip> + $1) is more than <this much>, DD pays only (<tip> + $1)
The only real differences between that and a restaurant are
- The numbers are all per delivery instead of per hour
- The sub-minimum wage is $1 instead of whatever it is for wait staff ($2.50 or so?). How these numbers compare depends on how many jobs per hour there are.
- The "you will make at least this much" amount varies by the delivery, vs waitstaff where it's a set number for all.
If you consider the "you will make at least this much" number to be "if you don't get tipped enough to make this much, we'll make sure to cover the difference for you", it's more clear how it's the same as for wait staff.