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Doordash

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Revision as of 14:04, 9 April 2025 by Vandetta (talk | contribs) (add source from the discord, add additional subject covering lawsuits being settled and ones that are still currently pending)
Doordash
Basic information
Founded 2013
Type Public
Industry Online Delivery
Official website https://www.doordash.com/

DoorDash was founded in June 2013, initially starting as PaloAltoDelivery.com before rebranding to Doordash. The company was founded by three Stanford students Tony Xu, Andy Fang, and Stanley Tang. Its focus is delivery on a wide variety of items, some items include fresh meals from nearby restaurants, groceries, convenience store items, OTC (Over the Counter) medicines, flowers, etc... This service mainly operates in locations within the U.S. (United States), Canada, and Australia.

Consumer-impact summary

Over the years of operation DoorDash has found itself in many controversial consumer and workers violations. Some of the most notable being:

  • Withholding contractors funds (up to weeks or months) for delivering orders
  • Lack of Business transparency especially with delivery fees confusing the consumer
  • Adding restaurants to their platform to order without the business's consent
  • Using driver tips to cover the cost of other deliveries
  • Taking advantage of financially challenged consumers by using BNPL (Buy Now Pay Later) services
  • Subsidizing Dashpass subscriptions by passing commission rates onto business's
  • Settling multiple lawsuits due to unfair business practices

Incidents

Withholding funds for contracted drivers & restaurants[1][2][3]

Charging users multiple unclear "fees" for delivery[1][4]

Adding restaurants to their platform without other business's consent[5][6][7]

Pocketing driver app tips to payout other dashers[1][8]

Using BNPL services to target the financially challenged consumers[9]

Using Dashpass subscription model to surcharge business's on order commissions[10]

Settling multiple lawsuits at a loss due to unlawful business practices[5]

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Products

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.[10]

This is a list of the company's product lines with articles on this wiki.

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See also

Link to relevant theme articles or companies with similar incidents.

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References

  1. ↑ 1.0 1.1 1.2 Glenn, Lindey (2025-03-31). "DoorDash's $1 BILLION Lawsuit: Exposing DoorDash's Predatory Business Model". Youtube. Retrieved 2025-04-04.{{cite web}}: CS1 maint: url-status (link)
  2. ↑ "When do Dashers get paid?". Doordash. 2025-04-08. Retrieved 2025-04-08.{{cite web}}: CS1 maint: url-status (link)
  3. ↑ Coban, Erkin (2025-04-08). "DoorDash Fees and Commissions for Restaurants: Detailed 2025 Guide - Restaurant Success Blog | Menuviel". Menuviel.{{cite web}}: CS1 maint: url-status (link)
  4. ↑ Mayer, Chloe (2023-06-09). "DoorDash Faces $1B Lawsuit Over Delivery Fees: 'Dupes Naive Consumers' - Newsweek". Newsweek. Retrieved 2025-04-04.{{cite web}}: CS1 maint: url-status (link)
  5. ↑ 5.0 5.1 "DoorDash - Wikipedia". Wikipedia. 2025-04-08. Retrieved 2025-04-08.{{cite web}}: CS1 maint: url-status (link)
  6. ↑ Pershan, Caleb (2020-01-29). "Delivery Apps Keep Adding Restaurants Without Their Consent - Eater". EATER. Retrieved 2025-04-04.{{cite web}}: CS1 maint: url-status (link)
  7. ↑ Settembre, Jeanette (2020-01-21). "DoorDash, Grubhub skewered by small restaurants for posting menus without permission | Fox Business". Fox Business. Retrieved 2025-04-09.{{cite web}}: CS1 maint: url-status (link)
  8. ↑ Calvario, Liz (2025-02-25). "DoorDash Settlement: Millions to Be Paid to Drivers For Pocketed Tips". TODAY. Retrieved 2025-04-08.{{cite web}}: CS1 maint: url-status (link)
  9. ↑ Steinberg, Brooke (2025-03-24). "DoorDash now offering eat now, pay later payments through Klarna". New York Post. Retrieved 2025-04-04.{{cite web}}: CS1 maint: url-status (link)
  10. ↑ 10.0 10.1 Kelso, Alicia (2020-12-07). "DoorDash hit with cease-and-desist letter from DC attorney general | Restaurant Dive". Restaurant Dive. Retrieved 2025-04-04.{{cite web}}: CS1 maint: url-status (link)
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