Doordash: Difference between revisions

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*Taking advantage of financially challenged consumers by using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services

*Subsidizing Dashpass subscriptions by passing commission rates onto business's

*Multiple lawsuits due to unfair business practices

*Multiple losses settling lawsuits due to unfair business practices

==Incidents==

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According to Doordash, <blockquote>"Dashers get paid on a weekly basis for all deliveries or tasks completed between Monday - Sunday of the previous week (ending Sunday at midnight local time). Payments are transferred directly to your bank account through Direct Deposit and usually take 2-3 days to show up in your bank account, so payments will appear by Wednesday night."<ref name=":3">{{Cite web |date=2025-04-08 |title=When do Dashers get paid? |url=https://help.doordash.com/dashers/s/article/When-do-Dashers-get-paid?language=en_US |url-status=live |access-date=2025-04-08 |website=Doordash}}</ref></blockquote>Even though they are treated like contractors they are still payed within a weekly basis instead of a quota based system. Many users who contract with Doordash need funds quickly to be able to cover daily expenses. This puts the dashers in a tough spot relying on cash tips if any to continue to get by until they are able to retrieve their weekly pay. However Doordash has already thought of this and created Fastpay.<blockquote>"Fast Pay allows Dashers to cash out their earnings daily for a small fee of $1.99. This means that Dashers can receive their earnings on demand through DoorDash, rather than waiting for their weekly direct deposit or using a third party service."<ref name=":3" /></blockquote>By holding holding dashers funds they are incurring free interest on the money by not paying out the dasher as soon as a delivery is completed. By taking advantage of desperate workers they can make more money off of the original transaction.

===Charging users multiple unclear "fees" for delivery<ref name=":0">{{Cite web |last=Glenn |first=Lindey |date=2025-03-31 |title=DoorDash’s $1 BILLION Lawsuit: Exposing DoorDash’s Predatory Business Model |url=https://www.youtube.com/watch?v=A-gPld7e3do |url-status=live |access-date=2025-04-04 |website=Youtube}}</ref><ref>{{Cite web |last=Mayer |first=Chloe |date=2023-06-09 |title=DoorDash Faces $1B Lawsuit Over Delivery Fees: 'Dupes Naive Consumers' - Newsweek |url=https://www.newsweek.com/lawsuit-doordash-sue-iphone-android-1805387 |url-status=live |access-date=2025-04-04 |website=Newsweek}}</ref>===

===Charging users multiple unclear "fees" for delivery===

Like many businesses Doordash does need to cover expenses that the company has. The issue lies with the transparency of how they do business with the customer base within their app. Many consumers have taken a legal class action lawsuit against Doordash.<ref name=":4">{{Cite web |last=Mayer |first=Chloe |date=2023-06-09 |title=DoorDash Faces $1B Lawsuit Over Delivery Fees: 'Dupes Naive Consumers' - Newsweek |url=https://www.newsweek.com/lawsuit-doordash-sue-iphone-android-1805387 |url-status=live |access-date=2025-04-04 |website=Newsweek}}</ref> The suit alleges Doordash's algorithm and pricing model changes based on who the consumer is; and not what they order. Specific examples include: delivery fee, any form of a hidden marketing fee or hidden commission fee.<ref name=":4" /> Doordash has denied all alleged claims referring to it as a "copy-and-paste job".

=== Data breach exposing millions of dashers and company info<ref name=":2" /> ===

===Data breach exposing millions of dashers and company info<ref name=":2" /><ref name=":5" />===

In mid 2019 Doordash suffered a data breach that effected 4.9 million customers, drivers and businesses sensitive information combined. Individuals that had joined Doordash after April 5th of 2018 were not effected. this breach took 5 months to be found. Doordash claims that "a third-party service provider," was to blame for this leak, but the third party was never named. It has been disclosed below.

{| class="wikitable"

|+Breached Data that was exposed

!Customers

!name, email and delivery addresses, order history, phone numbers, hashed and salted passwords and the last four digits of their payment cards taken.

|-

|Dashers

|last four digits of their bank account numbers stolen

|-

|Companies

|last four digits of their bank account numbers stolen, Approximately 100,000 had their drivers license stolen.

|}

Many consumers complained the year before about their account being hacked. But were assured by Doordash that it was not a breach and "claimed attackers were running credential stuffing attacks". This shows they did not take customers reports seriously and had a breach shortly after due to the companies opsec negligence.

===Adding restaurants to their platform without other business's consent<ref>{{Cite web |last=Coban |first=Erkin |date=2025-04-08 |title=DoorDash Fees and Commissions for Restaurants: Detailed 2025 Guide - Restaurant Success Blog {{!}} Menuviel |url=https://blog.menuviel.com/doordash-fees-and-commissions-for-restaurants/ |url-status=live |website=Menuviel}}</ref><ref name=":2">{{Cite web |date=2025-04-08 |title=DoorDash - Wikipedia |url=https://en.wikipedia.org/wiki/DoorDash |url-status=live |access-date=2025-04-08 |website=Wikipedia}}</ref><ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref><ref>{{Cite web |last=Settembre |first=Jeanette |date=2020-01-21 |title=DoorDash, Grubhub skewered by small restaurants for posting menus without permission {{!}} Fox Business |url=https://www.foxbusiness.com/small-business/doordash-grubhub-restaurant-listing-without-permission.amp |url-status=live |access-date=2025-04-09 |website=Fox Business}}</ref>===

===Adding restaurants to their platform without other business's consent<ref name=":5">{{Cite web |last=Coban |first=Erkin |date=2025-04-08 |title=DoorDash Fees and Commissions for Restaurants: Detailed 2025 Guide - Restaurant Success Blog {{!}} Menuviel |url=https://blog.menuviel.com/doordash-fees-and-commissions-for-restaurants/ |url-status=live |website=Menuviel}}</ref><ref name=":2">{{Cite web |date=2025-04-08 |title=DoorDash - Wikipedia |url=https://en.wikipedia.org/wiki/DoorDash |url-status=live |access-date=2025-04-08 |website=Wikipedia}}</ref><ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref><ref>{{Cite web |last=Settembre |first=Jeanette |date=2020-01-21 |title=DoorDash, Grubhub skewered by small restaurants for posting menus without permission {{!}} Fox Business |url=https://www.foxbusiness.com/small-business/doordash-grubhub-restaurant-listing-without-permission.amp |url-status=live |access-date=2025-04-09 |website=Fox Business}}</ref>===

===Pocketing driver app tips to payout other dashers<ref name=":0" /><ref>{{Cite web |last=Calvario |first=Liz |date=2025-02-25 |title=DoorDash Settlement: Millions to Be Paid to Drivers For Pocketed Tips |url=https://www.today.com/food/news/doordash-settlement-payout-rcna193728 |url-status=live |access-date=2025-04-08 |website=TODAY}}</ref>===

===Pocketing driver app tips to payout other dashers<ref name=":0">{{Cite web |last=Glenn |first=Lindey |date=2025-03-31 |title=DoorDash’s $1 BILLION Lawsuit: Exposing DoorDash’s Predatory Business Model |url=https://www.youtube.com/watch?v=A-gPld7e3do |url-status=live |access-date=2025-04-04 |website=Youtube}}</ref><ref>{{Cite web |last=Calvario |first=Liz |date=2025-02-25 |title=DoorDash Settlement: Millions to Be Paid to Drivers For Pocketed Tips |url=https://www.today.com/food/news/doordash-settlement-payout-rcna193728 |url-status=live |access-date=2025-04-08 |website=TODAY}}</ref>===

===Using BNPL services to target the financially challenged consumers<ref>{{Cite web |last=Steinberg |first=Brooke |date=2025-03-24 |title=DoorDash now offering eat now, pay later payments through Klarna |url=https://nypost.com/2025/03/24/lifestyle/DoorDash-now-offering-eat-now-pay-later-payments-through-klarna/ |url-status=live |access-date=2025-04-04 |website=New York Post}}</ref>===

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===Using Dashpass subscription model to surcharge business's on order commissions<ref name=":1">{{Cite web |last=Kelso |first=Alicia |date=2020-12-07 |title=DoorDash hit with cease-and-desist letter from DC attorney general {{!}} Restaurant Dive |url=https://www.restaurantdive.com/news/doordash-could-use-dashpash-as-a-workaround-to-delivery-fee-caps/591701/ |url-status=live |access-date=2025-04-04 |website=Restaurant Dive}}</ref>===

===Settling ~~and pending~~ lawsuits due to unlawful business practices<ref name=":2" />===

===Settling lawsuits due to unlawful business practices<ref name=":2" />===

{{Placeholder box|If the company page is short enough and/or the incident is not deserving of its own page, add incidents below in sub-sections (including the points outlined in [[Consumer_Action_Taskforce:Sample/Incident/Help|the incident help page]]) without linking/creating an incident page.

@@ Line 18: / Line 18: @@
 *Taking advantage of financially challenged consumers by using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services
 *Subsidizing Dashpass subscriptions by passing commission rates onto business's
-*Multiple lawsuits due to unfair business practices
+*Multiple losses settling lawsuits due to unfair business practices
 ==Incidents==
@@ Line 25: / Line 25: @@
 According to Doordash, <blockquote>"Dashers get paid on a weekly basis for all deliveries or tasks completed between Monday - Sunday of the previous week (ending Sunday at midnight local time). Payments are transferred directly to your bank account through Direct Deposit and usually take 2-3 days to show up in your bank account, so payments will appear by Wednesday night."<ref name=":3">{{Cite web |date=2025-04-08 |title=When do Dashers get paid? |url=https://help.doordash.com/dashers/s/article/When-do-Dashers-get-paid?language=en_US |url-status=live |access-date=2025-04-08 |website=Doordash}}</ref></blockquote>Even though they are treated like contractors they are still payed within a weekly basis instead of a quota based system. Many users who contract with Doordash need funds quickly to be able to cover daily expenses. This puts the dashers in a tough spot relying on cash tips if any to continue to get by until they are able to retrieve their weekly pay. However Doordash has already thought of this and created Fastpay.<blockquote>"Fast Pay allows Dashers to cash out their earnings daily for a small fee of $1.99. This means that Dashers can receive their earnings on demand through DoorDash, rather than waiting for their weekly direct deposit or using a third party service."<ref name=":3" /></blockquote>By holding holding dashers funds they are incurring free interest on the money by not paying out the dasher as soon as a delivery is completed. By taking advantage of desperate workers they can make more money off of the original transaction.
-===Charging users multiple unclear "fees" for delivery<ref name=":0">{{Cite web |last=Glenn |first=Lindey |date=2025-03-31 |title=DoorDash’s $1 BILLION Lawsuit: Exposing DoorDash’s Predatory Business Model |url=https://www.youtube.com/watch?v=A-gPld7e3do |url-status=live |access-date=2025-04-04 |website=Youtube}}</ref><ref>{{Cite web |last=Mayer |first=Chloe |date=2023-06-09 |title=DoorDash Faces $1B Lawsuit Over Delivery Fees: 'Dupes Naive Consumers' - Newsweek |url=https://www.newsweek.com/lawsuit-doordash-sue-iphone-android-1805387 |url-status=live |access-date=2025-04-04 |website=Newsweek}}</ref>===
+===Charging users multiple unclear "fees" for delivery===
+Like many businesses Doordash does need to cover expenses that the company has. The issue lies with the transparency of how they do business with the customer base within their app. Many consumers have taken a legal class action lawsuit against Doordash.<ref name=":4">{{Cite web |last=Mayer |first=Chloe |date=2023-06-09 |title=DoorDash Faces $1B Lawsuit Over Delivery Fees: 'Dupes Naive Consumers' - Newsweek |url=https://www.newsweek.com/lawsuit-doordash-sue-iphone-android-1805387 |url-status=live |access-date=2025-04-04 |website=Newsweek}}</ref> The suit alleges Doordash's algorithm and pricing model changes based on who the consumer is; and not what they order. Specific examples include: delivery fee, any form of a hidden marketing fee or hidden commission fee.<ref name=":4" /> Doordash has denied all alleged claims referring to it as a "copy-and-paste job".
-=== Data breach exposing millions of dashers and company info<ref name=":2" /> ===
+===Data breach exposing millions of dashers and company info<ref name=":2" /><ref name=":5" />===
+In mid 2019 Doordash suffered a data breach that effected 4.9 million customers, drivers and businesses sensitive information combined. Individuals that had joined Doordash after April 5th of 2018 were not effected. this breach took 5 months to be found. Doordash claims that "a third-party service provider," was to blame for this leak, but the third party was never named. It has been disclosed below.
+{| class="wikitable"
+|+Breached Data that was exposed
+!Customers
+!name, email and delivery addresses, order history, phone numbers, hashed and salted passwords and the last four digits of their payment cards taken.
+|-
+|Dashers
+|last four digits of their bank account numbers stolen
+|-
+|Companies
+|last four digits of their bank account numbers stolen, Approximately 100,000 had their drivers license stolen.
+|}
+Many consumers complained the year before about their account being hacked. But were assured by Doordash that it was not a breach and "claimed attackers were running credential stuffing attacks". This shows they did not take customers reports seriously and had a breach shortly after due to the companies opsec negligence.
-===Adding restaurants to their platform without other business's consent<ref>{{Cite web |last=Coban |first=Erkin |date=2025-04-08 |title=DoorDash Fees and Commissions for Restaurants: Detailed 2025 Guide - Restaurant Success Blog {{!}} Menuviel |url=https://blog.menuviel.com/doordash-fees-and-commissions-for-restaurants/ |url-status=live |website=Menuviel}}</ref><ref name=":2">{{Cite web |date=2025-04-08 |title=DoorDash - Wikipedia |url=https://en.wikipedia.org/wiki/DoorDash |url-status=live |access-date=2025-04-08 |website=Wikipedia}}</ref><ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent  - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref><ref>{{Cite web |last=Settembre |first=Jeanette |date=2020-01-21 |title=DoorDash, Grubhub skewered by small restaurants for posting menus without permission {{!}} Fox Business |url=https://www.foxbusiness.com/small-business/doordash-grubhub-restaurant-listing-without-permission.amp |url-status=live |access-date=2025-04-09 |website=Fox Business}}</ref>===
+===Adding restaurants to their platform without other business's consent<ref name=":5">{{Cite web |last=Coban |first=Erkin |date=2025-04-08 |title=DoorDash Fees and Commissions for Restaurants: Detailed 2025 Guide - Restaurant Success Blog {{!}} Menuviel |url=https://blog.menuviel.com/doordash-fees-and-commissions-for-restaurants/ |url-status=live |website=Menuviel}}</ref><ref name=":2">{{Cite web |date=2025-04-08 |title=DoorDash - Wikipedia |url=https://en.wikipedia.org/wiki/DoorDash |url-status=live |access-date=2025-04-08 |website=Wikipedia}}</ref><ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent  - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref><ref>{{Cite web |last=Settembre |first=Jeanette |date=2020-01-21 |title=DoorDash, Grubhub skewered by small restaurants for posting menus without permission {{!}} Fox Business |url=https://www.foxbusiness.com/small-business/doordash-grubhub-restaurant-listing-without-permission.amp |url-status=live |access-date=2025-04-09 |website=Fox Business}}</ref>===
-===Pocketing driver app tips to payout other dashers<ref name=":0" /><ref>{{Cite web |last=Calvario |first=Liz |date=2025-02-25 |title=DoorDash Settlement: Millions to Be Paid to Drivers For Pocketed Tips |url=https://www.today.com/food/news/doordash-settlement-payout-rcna193728 |url-status=live |access-date=2025-04-08 |website=TODAY}}</ref>===
+===Pocketing driver app tips to payout other dashers<ref name=":0">{{Cite web |last=Glenn |first=Lindey |date=2025-03-31 |title=DoorDash’s $1 BILLION Lawsuit: Exposing DoorDash’s Predatory Business Model |url=https://www.youtube.com/watch?v=A-gPld7e3do |url-status=live |access-date=2025-04-04 |website=Youtube}}</ref><ref>{{Cite web |last=Calvario |first=Liz |date=2025-02-25 |title=DoorDash Settlement: Millions to Be Paid to Drivers For Pocketed Tips |url=https://www.today.com/food/news/doordash-settlement-payout-rcna193728 |url-status=live |access-date=2025-04-08 |website=TODAY}}</ref>===
 ===Using BNPL services to target the financially challenged consumers<ref>{{Cite web |last=Steinberg |first=Brooke |date=2025-03-24 |title=DoorDash now offering eat now, pay later payments through Klarna |url=https://nypost.com/2025/03/24/lifestyle/DoorDash-now-offering-eat-now-pay-later-payments-through-klarna/ |url-status=live |access-date=2025-04-04 |website=New York Post}}</ref>===
@@ Line 37: / Line 51: @@
 ===Using Dashpass subscription model to surcharge business's on order commissions<ref name=":1">{{Cite web |last=Kelso |first=Alicia |date=2020-12-07 |title=DoorDash hit with cease-and-desist letter from DC attorney general {{!}} Restaurant Dive |url=https://www.restaurantdive.com/news/doordash-could-use-dashpash-as-a-workaround-to-delivery-fee-caps/591701/ |url-status=live |access-date=2025-04-04 |website=Restaurant Dive}}</ref>===
-===Settling and pending lawsuits due to unlawful business practices<ref name=":2" />===
+===Settling lawsuits due to unlawful business practices<ref name=":2" />===
 {{Placeholder box|If the company page is short enough and/or the incident is not deserving of its own page, add incidents below in sub-sections (including the points outlined in [[Consumer_Action_Taskforce:Sample/Incident/Help|the incident help page]]) without linking/creating an incident page.