Doordash pays 'Dasher's' $ 16.7 million after NY tip examination

Doorash After an examination of the top practices, pays an agreement of 16.7 million US dollars.

New York Attorney General Letitia James announced The settlement on Monday (February 24), in which she stated that her office had found that the delivery platform between 2017 and 2019 was mislead Use subsidizing your wages.

“Department members are an integral part of our communities and work tirelessly to bring food and other important essentials directly under all conditions right on our door,” said James in a press release.

“Doorash misled customers who generously typed and deceived the dasher who deserved to be paid in full. This settlement returns millions in the pockets diligently and ensures transparency in the future of Doordash. “

In an explanation published on news agencies, Doordash said that it was of the opinion that his practices “correctly represent how they were paid during this period, we are happy to have it solved This year's matter and I look forward to continuing to offer millions of people a flexible way to achieve their financial goals. “The company added that this old wage model was no longer used.

According to the Attorney General of the New York, Doordash used a guaranteed salary model between May 2017 and September 2019, with which Dasher's could see what they would be paid for before they accepted a delivery.

The investigation showed that the company used tips according to this model to compensate for the basic wage that had promised its workers instead of giving them the full tips they deserved.

After this “deceptive salary model”, the employees could only recognize their tips if they were larger than the amount that Doordash had already paid for the order. The company always paid at least 1 US dollar to the Dasher and would use customer tips to cover the rest of the amount that it guaranteed its employee.

And the research of Pymnts Intelligence has found that typing is not always guaranteed. As shown in the report “Tipplation changes the expenditure habits of 1 out of 6 consumers”, “ Consumers in all income groups stated that they sometimes reduce expenses because the tips increase the costs of goods and services.

The study showed that 29% of consumers were of the opinion requested on the site of the sale In order to write down to a certain amount of proposed tips, ”wrote Pymnt last year.

The settlement comes less than two weeks after Doorash was sued by the rival AboveWhat accuses society “Candy” Restaurants to work exclusively with his delivery service. Doordash said that Uber's claims are unfounded.