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Doordash

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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]

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Products

Dashpass (2018)

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. ↑ 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)
  2. ↑ 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)
  3. ↑ 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)
  4. ↑ 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)
  5. ↑ 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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