DoorDash tip withholding
Occurred: July 2019
Tips given to Doordash delivery drivers are not going to the drivers but instead are being sent in whole or in part to the company to offset other business costs.
A few days later, a Doordash customer filed a class action lawsuit accusing the company of 'materially false and misleading' tipping representations on its app. Doordash settled the suit for USD 2.5 million in November 2020.
In August 2019, the company changed its tipping and pay model for its delivery workers so that they get all the tips customers add to their bills.