Doordash: Difference between revisions
add AI menu advertising topic (with sources) |
m roll out value based pricing term |
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*Adding restaurants to their platform to order without the business's consent | *Adding restaurants to their platform to order without the business's consent | ||
*Using driver tips to cover the cost of other deliveries | *Using driver tips to cover the cost of other deliveries | ||
*Using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services to target the financially challenged consumers | *Using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services to target the financially challenged consumers | ||
*Using AI to falsely advertise what menu items look like | *Using AI to falsely advertise what menu items look like | ||
*Subsidizing Dashpass subscriptions by passing commission rates onto business's | *Subsidizing Dashpass subscriptions by passing commission rates onto business's | ||
*Multiple losses settling lawsuits due to unfair business practices | *Multiple losses settling lawsuits due to unfair business practices | ||
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===Charging users multiple unclear "fees" for delivery=== | ===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 | 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 unfair Value based pricing by leveraging their algorithm and pricing model changes on a per customer basis; 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" /><ref name=":5" />=== | ===Data breach exposing millions of dashers and company info<ref name=":2" /><ref name=":5" />=== | ||
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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>=== | ===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>=== | ||
=== Using AI to falsely advertise what menu items look like<ref>{{Cite web |date=2025-04-09 |title=DoorDash Unveils Suite of AI-Powered Tools to Enhance Online Menus and Streamline Merchant Operations |url=https://about.doordash.com/en-us/news/doordash-unveils-ai-powered-tools-to-enhance-online-menus-and-streamline-merchant-operations |url-status=live |access-date=2025-04-11 |website=Doordash}}</ref><ref>{{Cite web |last=Baker |first=Alex |date=2024-02-28 |title=The photos that you see on food delivery apps are probably AI |url=https://www.diyphotography.net/ghost-kitchens-using-ai-images-on-food-delivery-apps/ |url-status=live |access-date=2025-04-11 |website=DiyPhotography}}</ref><ref>{{Cite web |last=Canton |first=Rafael |date=2023-04-07 |title=The picture of that food you’re ordering online may have been created by AI |url=https://www.fastcompany.com/90870969/food-delivery-startup-ai-photos-swipeby |url-status=live |access-date=2025-04-11 |website=FastCompany}}</ref> === | ===Using AI to falsely advertise what menu items look like<ref>{{Cite web |date=2025-04-09 |title=DoorDash Unveils Suite of AI-Powered Tools to Enhance Online Menus and Streamline Merchant Operations |url=https://about.doordash.com/en-us/news/doordash-unveils-ai-powered-tools-to-enhance-online-menus-and-streamline-merchant-operations |url-status=live |access-date=2025-04-11 |website=Doordash}}</ref><ref>{{Cite web |last=Baker |first=Alex |date=2024-02-28 |title=The photos that you see on food delivery apps are probably AI |url=https://www.diyphotography.net/ghost-kitchens-using-ai-images-on-food-delivery-apps/ |url-status=live |access-date=2025-04-11 |website=DiyPhotography}}</ref><ref>{{Cite web |last=Canton |first=Rafael |date=2023-04-07 |title=The picture of that food you’re ordering online may have been created by AI |url=https://www.fastcompany.com/90870969/food-delivery-startup-ai-photos-swipeby |url-status=live |access-date=2025-04-11 |website=FastCompany}}</ref>=== | ||
===Settling lawsuits due to unlawful business practices<ref name=":2" />=== | ===Settling lawsuits due to unlawful business practices<ref name=":2" />=== | ||