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A recent report on delivery service DoorDash’s tip-skimming practices have resulted in a class-action lawsuit seeking all the of the tips that didn’t go to drivers as customers intended.
Gizmodo reports that delivery service DoorDash’s practice of withholding tips from drivers given through its app has caught up with the company as a new class action lawsuit claims that the delivery service misled customers on how their tips were used. An article in the New York Times outlined earlier this month how DoorDash keeps tips paid to drivers through its app:
DoorDash - Minimum - Job - Order - Guarantee
DoorDash offers a guaranteed minimum for each job. For my first order, the guarantee was $6.85 and the customer, a woman in Boerum Hill who answered the door in a colorful bathrobe, tipped $3.00 via the app. But I still received only $6.85.
Here’s how it works: If the woman in the bathrobe had tipped zero, DoorDash would have paid me the whole $6.85. Because she tipped $3.00, DoorDash kicked in only $3.85. She was saving DoorDash $3.00, not tipping me.
Class - Action - Lawsuit - US - District
A class action lawsuit has now been filed in the U.S. District Court for the Eastern District of New York on behalf of Alan Arkin, a Brooklyn resident alongside “others similarly situated.” The lawsuit alleges that DoorDash failed to make it clear to customers that tips they gave delivery drivers through the DoorDash app were not being allocated as they were intended and had customers been aware, they would not have used the app to tip drivers.
“DoorDash has engaged in...
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