DoorDash tip withholding
Occurred: July 2019
Can you improve this page?
Share your insights with us
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.
Databank
Operator: Doordash
Developer: Doordash
Country: USA
Sector: Transport/logistics
Technology:
Purpose: Determine worker pay
Issue: Employment - pay; Fairness
Transparency: Governance
System
Legal, regulatory
News, commentary, analysis
https://www.nytimes.com/2019/07/21/nyregion/doordash-ubereats-food-app-delivery-bike.html
https://www.nytimes.com/2019/07/24/nyregion/doordash-tip-policy.html
https://gothamist.com/2019/07/30/doordash_tipping_lawsuit.php
https://nypost.com/2019/07/29/brooklyn-man-sues-doordash-for-misleading-tipping-policy/
https://fortune.com/2019/11/12/doordash-new-tipping-policy-worker-pay/
https://www.cnet.com/news/doordash-settles-lawsuit-for-2-5m-over-deceptive-tipping-practices/
Page info
Type: Issue
Published: February 2022
Last updated: March 2022