Doordash: Difference between revisions

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A class-action litigation suit was filed for Doordash in allegedly labeling delivery workers in California and Massachusetts as independent contractors. An agreement was later reached in 2022 where Doordash payed out $100 million dollars. $61 million would be going to the effected 900,000+ drivers in both states, paying approximately $130 dollars per driver; with the other $28 million going to the lawyers.<ref name=":13">{{Cite web |last=Whitney |first=Kimball |date=2021-09-01 |title=DoorDash Settlement Would Pay a Paltry $130 to Workers Instead of Making Them Employees |url=https://gizmodo.com/doordash-settlement-would-pay-a-paltry-130-to-workers-1847586519 |url-status=live |access-date=2025-06-07 |website=Gizmodo}}</ref><ref>{{Cite web |last=Maeve |first=Allsup |date=2021-12-22 |title=DoorDash $100 Million Driver Settlement Tentatively Approved |url=https://news.bloomberglaw.com/daily-labor-report/doordash-100-million-driver-settlement-tentatively-approved |url-status=live |access-date=2025-06-07 |website=Bloomberg Law}}</ref> A quite minor sum for Doordash considering their CEO got payed $413 million dollars just the year before the settlement.<ref name=":13" />

==== Data breach lawsuit (2019) ====

====Data breach lawsuit (2019)====

In early may Doordash had a data breach with over 4.9 million effected individuals. All users who registered past April 5th 2018 were safe from the data that was stolen.<ref>{{Cite web |last=Whittaker |first=Zack |date=2016-09-26 |title=DoorDash confirms data breach affected 4.9 million customers, workers and merchants |url=https://techcrunch.com/2019/09/26/doordash-data-breach/ |url-status=live |access-date=2025-05-16 |website=Tech Crunch}}</ref> This has resulted in a class action in October 2019 against Doordash for not protecting user data.<ref>{{Cite web |last=Shaak |first=Erin |date=2019-08-04 |title=DoorDash Sued Over 2019 Data Breach Affecting More Than 4.9 Million Users |url=https://www.classaction.org/news/doordash-sued-over-2019-data-breach-affecting-more-than-4-9-million-users |url-status=live |access-date=2025-06-16 |website=Class Action Org}}</ref>

==== Withholding of tips and subsequent class-action lawsuits (2019) ~~[ NEEDS CITATIONS ]~~ ====

====Withholding of tips and subsequent class-action lawsuits (2019)====

In July, Doordash's tipping payout to drivers was critiqued by the New York Times, The Verge and Gothamist. The pay structure in question is where the Dasher would get payed a minimum amount for each order by Doordash. If the customer added a tip it would cover the companies expenses first to cover the minimum. the remaining amount of the tip would go to the dasher that was deducted from Doordash.

In July, Doordash's tipping payout to drivers was critiqued by the New York Times, The Verge and Gothamist.<ref>{{Cite web |last=Newman |first=Andy |date=2019-06-21 |title=My Frantic Life as a Cab-Dodging, Tip-Chasing Food App Deliveryman |url=https://www.nytimes.com/2019/07/21/nyregion/doordash-ubereats-food-app-delivery-bike.html |url-status=live |access-date=2025-06-27 |website=New York Times}}</ref><ref>{{Cite web |last=Vincent |first=James |date=2019-07-22 |title=Delivery apps like DoorDash are using your tips to pay workers’ wages |url=https://www.theverge.com/2019/7/22/20703434/delivery-app-tip-pay-theft-doordash-amazon-flex-instacart |url-status=live |access-date=2025-06-27 |website=The Verge}}</ref><ref>{{Cite web |last=Ghaffary |first=Shirin |date=2019-08-20 |title=DoorDash is still pocketing workers’ tips, almost a month after it promised to stop |url=https://www.vox.com/recode/2019/8/20/20825937/doordash-tipping-policy-still-not-changed-food-delivery-app-gig-economy |url-status=live |access-date=2025-06-27 |website=Vox}}</ref><ref name=":10">{{Cite web |last=Lampen |first=Claire |date=2019-07-10 |title=Brooklyn Man Sues DoorDash Over Grifty, Misleading Tip Policy |url=https://gothamist.com/2019/07/30/doordash_tipping_lawsuit.php |url-status=live |archive-url=https://web.archive.org/web/20190805221244/https://gothamist.com/2019/07/30/doordash_tipping_lawsuit.php |archive-date=2019-08-05 |access-date=2025-06-27 |website=Gothamist}}</ref> The pay structure in question is where the Dasher would get payed a minimum amount for each order by Doordash. If the customer added a tip it would cover the companies expenses first to cover the minimum. the remaining amount of the tip would go to the dasher that was deducted from Doordash.<ref name=":10" /><ref name=":14">{{Cite web |last=Wayt |first=Theo |date=2019-06-29 |title=Brooklyn man sues DoorDash for ‘misleading’ tipping policy |url=https://nypost.com/2019/07/29/brooklyn-man-sues-doordash-for-misleading-tipping-policy/ |url-status=live |access-date=2025-06-27 |website=New York Post}}</ref>

Later in 2020 Doordash was exposed for lying about pocketing portions of drivers tips, generating additional revenue for the company that dashers were unaware or uninformed about. This was happening after the company claimed it had refactored it's tipping system to be more transparent. But Doordash was still continuing to skim payouts for deliveries from dashers.

Later in 2020 Doordash was exposed for lying about pocketing portions of drivers tips, generating additional revenue for the company that dashers were unaware or uninformed about. This was happening after the company claimed it had refactored it's tipping system to be more transparent. But Doordash was still continuing to skim payouts for deliveries from dashers.<ref>{{Cite web |last=Keck |first=Catie |date=2020-01-07 |title=The Villain Always Wins |url=https://gizmodo.com/the-villain-always-wins-1841070357 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Keck |first=Catie |date=2019-03-15 |title=DoorDash Has Been Confusing Its Workers About Payments for Nearly Two Years |url=https://gizmodo.com/doordash-has-been-confusing-its-workers-about-payments-1833327287 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Keck |first=Catie |date=2019-12-10 |title=DoorDash Has a New Plan to Make Workers Gamble on How Much They’ll Get Paid |url=https://gizmodo.com/doordash-has-a-new-plan-to-make-workers-gamble-on-how-m-1840325285 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Ellis |first=Avery |date=2020-01-16 |title=DoorDash Contractors Earn Less Than Dogshit, Study Finds |url=https://gizmodo.com/doordash-contractors-earn-less-than-dogshit-study-find-1841048784 |url-status=dead |access-date=2025-06-27 |website=Gizmodo}}</ref>

This had led a customer to file a class action suit against the company claiming "materially false and misleading" in app tipping feature. The case was later moved to an arbitration hearing in August. Facing negative exposure and bad press the company finally complied to change their payout policy. The lawsuit was settled by District of Columbia Attorney General Karl Racine for $2.5 million with most of the amount going to dashers, government and charity.

This had led a customer to file a class action suit against the company claiming "materially false and misleading" in app tipping feature.<ref name=":10" /><ref name=":14" /> The case was later moved to an arbitration hearing in August.<ref>{{Cite web |last=Casetext |date=2020-08-24 |title=Arkin v. DoorDash, Inc. |url=https://casetext.com/case/arkin-v-doordash-inc |url-status=dead |archive-url=https://web.archive.org/web/20230213085836/https://casetext.com/case/arkin-v-doordash-inc |archive-date=2023-02-13 |access-date=2025-06-27 |website=Casetext}}</ref> Facing negative exposure and bad press the company finally complied to change their payout policy.<ref>{{Cite web |last=Abril |first=Danielle |date=2019-11-12 |title=DoorDash’s New Tipping Policy Has Increased Driver Pay |url=https://fortune.com/2019/11/12/doordash-new-tipping-policy-worker-pay/ |url-status=live |website=Fortune}}</ref><ref>{{Cite web |last=Newman |first=Andy |date=2019-07-24 |title=DoorDash Changes Tipping Model After Uproar From Customers |url=https://www.nytimes.com/2019/07/24/nyregion/doordash-tip-policy.html |url-status=live |website=New York Times}}</ref> The lawsuit was settled by District of Columbia Attorney General Karl Racine for $2.5 million with most of the amount going to dashers, government and charity.<ref>{{Cite web |last=Kerr |first=Dara |date=2020-11-25 |title=DoorDash settles lawsuit for $2.5M over 'deceptive' tipping practices |url=https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-for-2-5m-over-deceptive-tipping-practices/ |url-status=live |access-date=2025-06-27 |website=CNET}}</ref><ref>{{Cite web |last=Canales |first=Katie |date=2020-11-25 |title=DoorDash is paying $2.5 million to settle a lawsuit that accused the food delivery company of stealing drivers' tips |url=https://www.businessinsider.com/doordash-25-million-settlement-lawsuit-tipping-model-2020-11 |url-status=live |website=Business Insider}}</ref><ref>{{Cite web |last=OAC |date=2020-11-24 |title=AG Racine Reaches $2.5 Million Agreement with DoorDash for Misrepresenting that Consumer Tips Would Go to Food Delivery Drivers |url=https://oag.dc.gov/release/ag-racine-reaches-25-million-agreement-doordash |website=Office of the Attorney General for the District of Columbia}}</ref>

"<blockquote>

@@ Line 79: / Line 79: @@
 A class-action litigation suit was filed for Doordash in allegedly labeling delivery workers in California and Massachusetts as independent contractors. An agreement was later reached in 2022 where Doordash payed out $100 million dollars. $61 million would be going to the effected 900,000+ drivers in both states, paying approximately $130 dollars per driver; with the other $28 million going to the lawyers.<ref name=":13">{{Cite web |last=Whitney |first=Kimball |date=2021-09-01 |title=DoorDash Settlement Would Pay a Paltry $130 to Workers Instead of Making Them Employees |url=https://gizmodo.com/doordash-settlement-would-pay-a-paltry-130-to-workers-1847586519 |url-status=live |access-date=2025-06-07 |website=Gizmodo}}</ref><ref>{{Cite web |last=Maeve |first=Allsup |date=2021-12-22 |title=DoorDash $100 Million Driver Settlement Tentatively Approved |url=https://news.bloomberglaw.com/daily-labor-report/doordash-100-million-driver-settlement-tentatively-approved |url-status=live |access-date=2025-06-07 |website=Bloomberg Law}}</ref> A quite minor sum for Doordash considering their CEO got payed $413 million dollars just the year before the settlement.<ref name=":13" />
-==== Data breach lawsuit (2019) ====
+====Data breach lawsuit (2019)====
 In early may Doordash had a data breach with over 4.9 million effected individuals. All users who registered past April 5th 2018 were safe from the data that was stolen.<ref>{{Cite web |last=Whittaker |first=Zack |date=2016-09-26 |title=DoorDash confirms data breach affected 4.9 million customers, workers and merchants |url=https://techcrunch.com/2019/09/26/doordash-data-breach/ |url-status=live |access-date=2025-05-16 |website=Tech Crunch}}</ref> This has resulted in a class action in October 2019 against Doordash for not protecting user data.<ref>{{Cite web |last=Shaak |first=Erin |date=2019-08-04 |title=DoorDash Sued Over 2019 Data Breach Affecting More Than 4.9 Million Users |url=https://www.classaction.org/news/doordash-sued-over-2019-data-breach-affecting-more-than-4-9-million-users |url-status=live |access-date=2025-06-16 |website=Class Action Org}}</ref>
-==== Withholding of tips and subsequent class-action lawsuits (2019) [ NEEDS CITATIONS ] ====
+====Withholding of tips and subsequent class-action lawsuits (2019)====
-In July, Doordash's tipping payout to drivers was critiqued by the New York Times, The Verge and Gothamist. The pay structure in question is where the Dasher would get payed a minimum amount for each order by Doordash. If the customer added a tip it would cover the companies expenses first to cover the minimum. the remaining amount of the tip would go to the dasher that was deducted from Doordash.
+In July, Doordash's tipping payout to drivers was critiqued by the New York Times, The Verge and Gothamist.<ref>{{Cite web |last=Newman |first=Andy |date=2019-06-21 |title=My Frantic Life as a Cab-Dodging, Tip-Chasing Food App Deliveryman |url=https://www.nytimes.com/2019/07/21/nyregion/doordash-ubereats-food-app-delivery-bike.html |url-status=live |access-date=2025-06-27 |website=New York Times}}</ref><ref>{{Cite web |last=Vincent |first=James |date=2019-07-22 |title=Delivery apps like DoorDash are using your tips to pay workers’ wages |url=https://www.theverge.com/2019/7/22/20703434/delivery-app-tip-pay-theft-doordash-amazon-flex-instacart |url-status=live |access-date=2025-06-27 |website=The Verge}}</ref><ref>{{Cite web |last=Ghaffary |first=Shirin |date=2019-08-20 |title=DoorDash is still pocketing workers’ tips, almost a month after it promised to stop |url=https://www.vox.com/recode/2019/8/20/20825937/doordash-tipping-policy-still-not-changed-food-delivery-app-gig-economy |url-status=live |access-date=2025-06-27 |website=Vox}}</ref><ref name=":10">{{Cite web |last=Lampen |first=Claire |date=2019-07-10 |title=Brooklyn Man Sues DoorDash Over Grifty, Misleading Tip Policy |url=https://gothamist.com/2019/07/30/doordash_tipping_lawsuit.php |url-status=live |archive-url=https://web.archive.org/web/20190805221244/https://gothamist.com/2019/07/30/doordash_tipping_lawsuit.php |archive-date=2019-08-05 |access-date=2025-06-27 |website=Gothamist}}</ref> The pay structure in question is where the Dasher would get payed a minimum amount for each order by Doordash. If the customer added a tip it would cover the companies expenses first to cover the minimum. the remaining amount of the tip would go to the dasher that was deducted from Doordash.<ref name=":10" /><ref name=":14">{{Cite web |last=Wayt |first=Theo |date=2019-06-29 |title=Brooklyn man sues DoorDash for ‘misleading’ tipping policy |url=https://nypost.com/2019/07/29/brooklyn-man-sues-doordash-for-misleading-tipping-policy/ |url-status=live |access-date=2025-06-27 |website=New York Post}}</ref>
-Later in 2020 Doordash was exposed for lying about pocketing portions of drivers tips, generating additional revenue for the company that dashers were unaware or uninformed about. This was happening after the company claimed it had refactored it's tipping system to be more transparent. But Doordash was still continuing to skim payouts for deliveries from dashers.
+Later in 2020 Doordash was exposed for lying about pocketing portions of drivers tips, generating additional revenue for the company that dashers were unaware or uninformed about. This was happening after the company claimed it had refactored it's tipping system to be more transparent. But Doordash was still continuing to skim payouts for deliveries from dashers.<ref>{{Cite web |last=Keck |first=Catie |date=2020-01-07 |title=The Villain Always Wins |url=https://gizmodo.com/the-villain-always-wins-1841070357 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Keck |first=Catie |date=2019-03-15 |title=DoorDash Has Been Confusing Its Workers About Payments for Nearly Two Years |url=https://gizmodo.com/doordash-has-been-confusing-its-workers-about-payments-1833327287 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Keck |first=Catie |date=2019-12-10 |title=DoorDash Has a New Plan to Make Workers Gamble on How Much They’ll Get Paid |url=https://gizmodo.com/doordash-has-a-new-plan-to-make-workers-gamble-on-how-m-1840325285 |url-status=live |access-date=2025-06-27 |website=Gizmodo}}</ref><ref>{{Cite web |last=Ellis |first=Avery |date=2020-01-16 |title=DoorDash Contractors Earn Less Than Dogshit, Study Finds |url=https://gizmodo.com/doordash-contractors-earn-less-than-dogshit-study-find-1841048784 |url-status=dead |access-date=2025-06-27 |website=Gizmodo}}</ref>
-This had led a customer to file a class action suit against the company claiming "materially false and misleading" in app tipping feature. The case was later moved to an arbitration hearing in August. Facing negative exposure and bad press the company finally complied to change their payout policy. The lawsuit was settled by District of Columbia Attorney General Karl Racine for $2.5 million with most of the amount going to dashers, government and charity.
+This had led a customer to file a class action suit against the company claiming "materially false and misleading" in app tipping feature.<ref name=":10" /><ref name=":14" /> The case was later moved to an arbitration hearing in August.<ref>{{Cite web |last=Casetext |date=2020-08-24 |title=Arkin v. DoorDash, Inc. |url=https://casetext.com/case/arkin-v-doordash-inc |url-status=dead |archive-url=https://web.archive.org/web/20230213085836/https://casetext.com/case/arkin-v-doordash-inc |archive-date=2023-02-13 |access-date=2025-06-27 |website=Casetext}}</ref> Facing negative exposure and bad press the company finally complied to change their payout policy.<ref>{{Cite web |last=Abril |first=Danielle |date=2019-11-12 |title=DoorDash’s New Tipping Policy Has Increased Driver Pay |url=https://fortune.com/2019/11/12/doordash-new-tipping-policy-worker-pay/ |url-status=live |website=Fortune}}</ref><ref>{{Cite web |last=Newman |first=Andy |date=2019-07-24 |title=DoorDash Changes Tipping Model After Uproar From Customers |url=https://www.nytimes.com/2019/07/24/nyregion/doordash-tip-policy.html |url-status=live |website=New York Times}}</ref> The lawsuit was settled by District of Columbia Attorney General Karl Racine for $2.5 million with most of the amount going to dashers, government and charity.<ref>{{Cite web |last=Kerr |first=Dara |date=2020-11-25 |title=DoorDash settles lawsuit for $2.5M over 'deceptive' tipping practices |url=https://www.cnet.com/tech/mobile/doordash-settles-lawsuit-for-2-5m-over-deceptive-tipping-practices/ |url-status=live |access-date=2025-06-27 |website=CNET}}</ref><ref>{{Cite web |last=Canales |first=Katie |date=2020-11-25 |title=DoorDash is paying $2.5 million to settle a lawsuit that accused the food delivery company of stealing drivers' tips |url=https://www.businessinsider.com/doordash-25-million-settlement-lawsuit-tipping-model-2020-11 |url-status=live |website=Business Insider}}</ref><ref>{{Cite web |last=OAC |date=2020-11-24 |title=AG Racine Reaches $2.5 Million Agreement with DoorDash for Misrepresenting that Consumer Tips Would Go to Food Delivery Drivers |url=https://oag.dc.gov/release/ag-racine-reaches-25-million-agreement-doordash |website=Office of the Attorney General for the District of Columbia}}</ref>
 "<blockquote>