A class-action lawsuit filed against DoorDash alleges that the company charges iPhone users more than those who ordered from an Android device.
The lawsuit was filed in the U.S. District Court of Maryland on May 5 and accuses DoorDash of “deceptive, misleading, and fraudulent practices that illegally deprive consumers of millions, if not billions, of dollars annually.” The plaintiffs, Ross and Reid Hecox, are seeking $1 billion in monetary damages “for all consumers who fell prey to DoorDash’s illegal pricing scheme over the last four years.”
The lawsuit alleges DoorDash of exploiting iPhone users via its “expanded range” fee, which kicks in when a restaurant is outside of a customer’s “normal delivery area.” Citing tests, the lawsuit claims the company tacks on the expanded range fee more often on iPhone users, adding “likely because studies reveal iPhone users earn more.”
“These tactics are simply money grabs,” the lawsuit said.
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The lawsuit also alleges DoorDash of “charging customers a premium amount for deliveries that DoorDash does not perform,” creating “normal delivery areas” based on how much the restaurant pays it rather than its distance to the customer and an ability to actually speed up orders for customers who pay an “Express” fee. DashPass users who pay $9.99 per month -- $96 annually -- also were given an extra fee with each order that cut away at the supposed savings of their subscription, according to the lawsuit.
The company has denied wrongdoing when it comes to its latest lawsuit.
“The claims put forward in the amended complaint are baseless and simply without merit,” a DoorDash spokesperson told Insider. “We ensure fees are disclosed throughout the customer experience, including on each restaurant storepage and before checkout. Building this trust is essential, and it's why the majority of delivery orders on our platform are placed by return customers. We will continue to strive to make our platform work even better for customers, and will vigorously fight these allegations.”
U.S. & World
In 2020, DoorDash agreed to a $2.5 million settlement after it was alleged of taking tips that customers believed were strictly for delivery drivers. DoorDash and Grubhub then faced consumer protection lawsuits from the city of Chicago in 2021 for “engaging in deceptive and unfair business practices."
