DoorDash Settles for $16.75M: 60,000 Delivery Workers to Benefit, Says NY AG

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DoorDash has agreed to a settlement that will distribute between $10 and $14,000 to each of around 60,000 delivery workers, known as "Dashers," according to New York Attorney General Letitia James. The settlement addresses a practice in which DoorDash used tips to reduce the amount it paid Dashers.

For example, if a customer tipped $3 on a $10 delivery, DoorDash would only contribute $7, allowing the Dasher to keep the tip. This policy was kept hidden from both Dashers and customers, with the latter unaware that their tips were not fully going to the workers.

The investigation, supported by Illinois and Washington D.C., revealed that DoorDash executives were concerned Dashers would eventually uncover the practice. The company has agreed to end the tip-sharing practice, increase transparency, and report to the Attorney General’s office every six months for the next three years. 

A DoorDash spokesperson stated that the pay model in question was used between 2017 and 2019 and has been discontinued for the past six years. The company emphasized that Dashers now keep 100% of their tips for orders placed on the app.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author