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DoorDash’s years-long scheme to use customer tips to subsidize its workers’ wages is finally catching up to the company. And hot on the heels of renewed outrage about its tip-shaving scheme, a new class-action lawsuit is taking aim at the company for misleading its customers about how their tips were used.
Though the controversial tipping system has been covered widely for months, the lawsuit follows a recent New York Times article in which reporter Andy Newman completed a 27-hour stint as a dasher (the term DoorDash uses for its delivery workers). The suit, filed this week in the U.S. District Court for the Eastern District of New York on behalf of Brooklyn resident Alan Arkin and “others similarly situated,” claims that that DoorDash failed to make clear to its customers that tips they gave through its app to couriers were not being allocated as they were intended to be, and that had customers known this, they would not have tipped through the app. (It wasn’t immediately clear by press time whether the plaintiff Alan Arkin is the same award-winning, Little Miss Sunshine-starring actor of the same name, but rest assured we’ve reached out to Arkin’s lawyers to find out.)
The suit defines a member of the class as someone who has “used DoorDash and paid a tip through the Door Dash app within the statutory period.”
“DoorDash has engaged in unlawful and deceptive acts, practices and misconduct by misleading Plaintiff and the consuming public to believe that the tip amount entered on the DoorDash app would be received as a tip by the DoorDash delivery workers for their service,” the filing states. “DoorDash knew, and failed to disclose, that the tip amount entered by Plaintiff and other consumers on the app was received by DoorDash, in whole or in part, and used to subsidize its cost of doing business.”
Read more here. (Gizmodo)
Though the controversial tipping system has been covered widely for months, the lawsuit follows a recent New York Times article in which reporter Andy Newman completed a 27-hour stint as a dasher (the term DoorDash uses for its delivery workers). The suit, filed this week in the U.S. District Court for the Eastern District of New York on behalf of Brooklyn resident Alan Arkin and “others similarly situated,” claims that that DoorDash failed to make clear to its customers that tips they gave through its app to couriers were not being allocated as they were intended to be, and that had customers known this, they would not have tipped through the app. (It wasn’t immediately clear by press time whether the plaintiff Alan Arkin is the same award-winning, Little Miss Sunshine-starring actor of the same name, but rest assured we’ve reached out to Arkin’s lawyers to find out.)
The suit defines a member of the class as someone who has “used DoorDash and paid a tip through the Door Dash app within the statutory period.”
“DoorDash has engaged in unlawful and deceptive acts, practices and misconduct by misleading Plaintiff and the consuming public to believe that the tip amount entered on the DoorDash app would be received as a tip by the DoorDash delivery workers for their service,” the filing states. “DoorDash knew, and failed to disclose, that the tip amount entered by Plaintiff and other consumers on the app was received by DoorDash, in whole or in part, and used to subsidize its cost of doing business.”
Read more here. (Gizmodo)
