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A DoorDash class action alleges that drivers for the delivery service don’t receive full tips from consumers who pay through the app, according to a employement lawsuit filed in California.
Plaintiffs Jennifer Peter and Karson Theiss claim that they were misled about the nature of their tips when making purchases from DoorDash.
When a consumer makes a purchase from DoorDash, their delivery driver is reportedly guaranteed a minimum payment. Although consumers are able to leave tips for their drivers, the workers allegedly do not receive these tips on top of their minimum payment. Instead, DoorDash allegedly uses these tips to subsidize their own payments to drivers.
For example, if a driver is guaranteed a minimum payment of $7 and the consumer leaves no tip, DoorDash reportedly uses their own money to pay the driver. However, if the consumer were to leave a $3 tip, this amount would allegedly be used by DoorDash to pay the minimum payment. In this situation, DoorDash would reportedly use the $3 tip and $4 of their own money to pay the driver their guaranteed payment.
“The result is that the Dasher receives no additional compensation by the consumer leaving a tip through DoorDash’s website or app, and the consumer is deceived into leaving a tip that merely reduces the amount that DoorDash has to pay the Dasher to meet the guaranteed minimum payment,” the DoorDash class action lawsuit states.
According to Peter and Theiss’ DoorDash class action, they were not aware that DoorDash would essentially be stealing their tips. They were reportedly led to believe that their tips would be given directly to the driver on top of a minimum guaranteed payment.
DoorDash allegedly fails to inform consumers of their tip policy on their website. Instead, customers are allegedly given an option to add a “Dasher Tip” with no other information about how their tip will be used. According to the DoorDash class action, reasonable consumers assume that their tips will be given to the drivers.
Even if consumers were to go through the extra effort to hunt down information about DoorDash’s tip policy, the website allegedly lacks clear information.
The DoorDash class action claims that “nothing” on the website section informs customers that “their tips are being used by DoorDash to subsidize the Dasher’s guaranteed minimum payment and in most cases provide no financial benefit to the Dasher.”
Peter and Theiss seek to represent a Class of consumers who placed a food delivery order through DoorDash and paid a tip through the website or app. The plaintiffs also seek to represent two subclasses of the same consumers from Missouri or Illinois, respectively.
DoorDash Inc. faces similar allegations in another class action lawsuit filed in Georgia. The plaintiffs in this DoorDash class action also claim that drivers for the delivery company do not receive 100 percent of their tips. Unlike Peter and Theiss, the plaintiffs in this case were drivers and brought claims based on their employment.
Did you leave a tip after placing an order through DoorDash? Share your experiences in the comment section below.
Plaintiffs and the proposed Class are represented by Mike Arias, Elise R. Sanguinetti, and Alfredo Torrijos of Arias Sanguinetti Wang & Torrijos LLP and by Richard S. Cornfeld and Daniel Scott Levy of the Law Office of Richard S. Cornfeld LLC.
The DoorDash Class Action Lawsuit is Peter, et al. v. DoorDash Inc., Case No. 3:19-cv-06098-TSH, in the U.S. District Court for the Northern District of California.
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ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
92 thoughts onDoorDash Class Action Says Drivers Owed Tips
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Missouri resident here that’s more than happy to help the cause. I have made the effort to find out how the pay structure actually functions at DoorDash to no avail. There is no clear cut statement of practices available on their website, and most articles on the topic state something to the effect of “we were unable to confirm the specific pay structure with the company.” I have also talked to multiple drivers, seeking a better accounting of the methodology, and am continually surprised each time a dasher develops a puzzled look on their face before confessing that they aren’t really sure. I use the company often and since they actively avoid any degree of transparency on the matter, I transitioned to cash tips only, whenever possible, a few months back. My service tips were never intended to subsidize a large corporation and fatten their bottom line at the expense of the drivers. Without them, the company is nothing.
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same here. They are robbing the drivers for their own gain.
I’ve been in Georgia since June 2018 and now they’re not giving us the tips with supposed to be getting some deliveries to get $4 it used to be 10:15 now what’s 4 + $5 it’s not even worth dashing anymore
Im a mass door dasher since 6 /2018 the tips of low 4 and $5 tips no more 10 and 11 dollar tips at all at least $20 a delivery
I am door dash driver. Please add me to the list
Please add me. I have driven for Door dash here in California since 2017.
Same here I started dashing in California back in 2017, currently doing it in North Carolina since 2018…I know for a fact I haven’t received my tip payouts, I call them on it all the time and its always an excuse
Please add me to the list. I have had many customers inform me of the amount of tip they had given. Did not receive it.
I dash in the Minneapolis area and have noticed this a lot here when dashing
Please add me