Doordash: Difference between revisions
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Over the years of operation DoorDash has found itself in many controversial consumer and workers violations. Some of the most notable being: | 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 | *Withholding contractors funds (up to weeks or months) for delivering orders | ||
* Lack of Business transparency especially with delivery fees confusing the consumer | *Lack of Business transparency especially with delivery fees confusing the consumer | ||
* 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 | ||
* Taking advantage of financially challenged consumers by using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services | *Taking advantage of financially challenged consumers by using [https://wiki.rossmanngroup.com/wiki/Buy_Now_Pay_Later BNPL] (Buy Now Pay Later) services | ||
*Subsidizing Dashpass subscriptions by passing commission rates onto business's | |||
==Incidents== | ==Incidents== | ||
=== Withholding funds for contracted drivers<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> === | ===Withholding funds for contracted drivers<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>=== | ||
=== Charging users multiple unclear "fees" for delivery<ref name=":0" /><ref>{{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> === | ===Charging users multiple unclear "fees" for delivery<ref name=":0" /><ref>{{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>=== | ||
=== Adding restaurants to their platform without other business's consent<ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref> === | ===Adding restaurants to their platform without other business's consent<ref>{{Cite web |last=Pershan |first=Caleb |date=2020-01-29 |title=Delivery Apps Keep Adding Restaurants Without Their Consent - Eater |url=https://www.eater.com/2020/1/29/21113416/grubhub-seamless-kin-khao-online-delivery-mistake-doordash |url-status=live |access-date=2025-04-04 |website=EATER}}</ref>=== | ||
=== Subsidizing driver tips to payout other dashers for deliveries with little or no tips<ref name=":0" /> === | ===Subsidizing driver tips to payout other dashers for deliveries with little or no tips<ref name=":0" />=== | ||
=== 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>=== | ||
=== Using Dashpass subscription model to surcharge business's on order commissions<ref>{{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>{{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>=== | ||
{{Placeholder box|If the company page is short enough and/or the incident is not deserving of its own page, add incidents below in sub-sections (including the points outlined in [[Consumer_Action_Taskforce:Sample/Incident/Help|the incident help page]]) without linking/creating an incident page. | {{Placeholder box|If the company page is short enough and/or the incident is not deserving of its own page, add incidents below in sub-sections (including the points outlined in [[Consumer_Action_Taskforce:Sample/Incident/Help|the incident help page]]) without linking/creating an incident page. | ||
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==Products== | ==Products== | ||
=== Dashpass (2018) === | ===Dashpass (2018)=== | ||
{{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''. | {{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''. | ||
* [[Example product line one]] (release date): Short summary of the product's incidents. | * [[Example product line one]] (release date): Short summary of the product's incidents. | ||
Revision as of 15:08, 4 April 2025
Doordash
| Basic information | |
|---|---|
| Founded | 2013 |
| Type | Public |
| Industry | Food 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
Incidents
Withholding funds for contracted drivers[1]
Charging users multiple unclear "fees" for delivery[1][2]
Adding restaurants to their platform without other business's consent[3]
Subsidizing driver tips to payout other dashers for deliveries with little or no tips[1]
Using BNPL services to target the financially challenged consumers[4]
Using Dashpass subscription model to surcharge business's on order commissions[5]
Products
Dashpass (2018)
See also
References
- ↑ Jump up to: 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) - ↑ 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) - ↑ 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) - ↑ 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) - ↑ 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)