Doordash: Difference between revisions
Adding restaurants to their platform without other business's consent: added elaboration on the section |
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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. The contents of the data exposed has been disclosed with this chart below. | 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. The contents of the data exposed has been disclosed with this chart below. | ||
{| class="wikitable" | {| class="wikitable" | ||
|+Breached Data that was exposed | |+<big>Breached Data that was exposed</big> | ||
!Customers | !Customers | ||
|name, email and delivery addresses, order history, phone numbers, hashed & salted passwords and the last four digits of their payment cards taken. | |||
|- | |- | ||
!Dashers | |||
|last four digits of their bank account numbers stolen, Approximately 100,000 had their drivers license stolen. | |last four digits of their bank account numbers stolen, Approximately 100,000 had their drivers license stolen. | ||
|- | |- | ||
!Companies | |||
|last four digits of their bank account numbers stolen | |last four digits of their bank account numbers stolen | ||
|} | |} | ||
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Starting around 2020 Doordash had decided that the company needed more outreach. To do this the company started adding business that had no arrangements for takeout or delivery without the owners consent.<ref name=":6" /><ref name=":7" /> This has led to increased stress on businesses that were not ready for a higher influx of volume orders but also being charged up to 30% in referral fees depending on the business.<ref name=":5" /><ref name=":7" /> Many small cooperation's and restaurants were impacted the most due to these policies; mostly because profit margins are usually lower than a multi billion dollar franchise that has been tailored to do takeout for decades or industry chains that are used to higher order volumes. Behavior like this may end up running smaller unprepared business operations to close permanently leaving only the bigger cooperation's to compete for the consumers purchasing power. | Starting around 2020 Doordash had decided that the company needed more outreach. To do this the company started adding business that had no arrangements for takeout or delivery without the owners consent.<ref name=":6" /><ref name=":7" /> This has led to increased stress on businesses that were not ready for a higher influx of volume orders but also being charged up to 30% in referral fees depending on the business.<ref name=":5" /><ref name=":7" /> Many small cooperation's and restaurants were impacted the most due to these policies; mostly because profit margins are usually lower than a multi billion dollar franchise that has been tailored to do takeout for decades or industry chains that are used to higher order volumes. Behavior like this may end up running smaller unprepared business operations to close permanently leaving only the bigger cooperation's to compete for the consumers purchasing power. | ||
===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>=== | ===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 name=":8">{{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><ref>{{Cite web |last=James |first=Letitia |date=2025-02-24 |title=Attorney General James Secures $16.75 Million from DoorDash for Cheating Delivery Workers Out of Tips |url=https://ag.ny.gov/press-release/2025/attorney-general-james-secures-1675-million-doordash-cheating-delivery-workers |url-status=live |access-date=2025-05-09 |website=NY GOV}}</ref>=== | ||
In February 24 of 2025, a press release statement New York Attorney General Letitia James released the results of their investigation stating that Doordash between May 2017 and September 2019<blockquote>“used customer tips to offset the base pay it had already guaranteed to workers, instead of giving workers the full tips they rightfully earned.”<ref name=":8" /></blockquote>Doordash has lost this lawsuit and was ordered to pay a hefty sum for mistreating the contractors about transparent pay as seen below for further detail <blockquote>"DoorDash will pay $16.75 million in restitution for Dashers and up to $1 million in settlement administrator costs to help issue the payments."<ref name=":8" /></blockquote>Doordash has responded to the litigation loss by stating it was an ''"old pay structure"'' as they are currently using a newer one where contractors keep all their tips. | |||
The old pay structure that Doordash's PR team was referring to would only show dashers tip amount if it was higher than what Doordash was willing to pay them for that contract batch. In many cases when the tip amount failed to surpass what the company was willing to pay the dasher for the order it was often taken and spread across other orders that may have had a lower initial payout. This ''"old pay structure"'' has impacted over 63,000 New Yorker's alone. | |||
===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>=== | ===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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===Dashpass (2018 - Present)=== | ===Dashpass (2018 - Present)=== | ||
A premium program offered by Door Dash. This program offers free delivery on orders greater than $12 along with reduced service fees for deliveries. By paying the subscription price Doordash advertises this program as a cost saving measure for consumers that use their app frequently. This offer however has been subject to a variety of criticism. One of the more popular cases being hit with a cease-and-desist letter from DC attorney general for charging more than 15% on commissions to make up the losses of the companies free delivery policy with Dashpass.<ref name=":1" /> | A premium program offered by Door Dash. This program offers free delivery on orders greater than $12 along with reduced service fees for deliveries. By paying the subscription price Doordash advertises this program as a cost saving measure for consumers that use their app frequently. This offer however has been subject to a variety of criticism. One of the more popular cases being hit with a cease-and-desist letter from DC attorney general for charging more than 15% on commissions to make up the losses of the companies free delivery policy with Dashpass.<ref name=":1" /> | ||
==See also== | ==See also== | ||
{{Placeholder box|Link to relevant theme articles or companies with similar incidents.}} | {{Placeholder box|Link to relevant theme articles or companies with similar incidents.}} | ||