Doordash accepts 17 million US dollar agreement for misuse of driver tips

The online delivery platform Doorash has reached an agreement of around 17 million US dollars with the General Prosecutor's Office in New York after allegations for embezzlement of tips that were intended for its delivery agents.

The platform based in San Francisco, USA, will be accused of subsidizing the basic payment of your drivers known as Dasher's.

The New York Attorney General Letitia James announced the settlement and explained that Doordash misleaded consumers and deliverers by not giving the fully tips that they deserve.

According to court documents, the company has misrepresented how tips that customers contributed to are assigned to the drivers.

James said in a press conference in Manhattan: “This is only unfair.

“Customers had no reason to assume that these tips were used by Doordash to reduce their costs […]. They knew it was wrong and they did it anyway. “

A Doordash spokesman was quoted by USA TODAY: “The company is still obliged to ensure that this is always fair and transparent.

“The allegations based on an old wage model that was retired in 2019. While we believe that our practices were properly presented during this time, we are pleased to have solved this year's matter, and we look forward to continuing to offer a flexible opportunity for millions of people to achieve their financial goals.”

Doordash will implement a clear disclosure in its mobile application and provide detailed information about your potential income before accepting a delivery list and ensuring transparency regarding handling of tips.

James added: “Department members are an integral part of our communities and work tirelessly to bring food and other essentials directly to our front doors under all conditions. This settlement returns millions in the pockets diligently and ensures transparency in the future of Doordash. “

Further details will be published shortly how authorized contributions can claim their share in the comparison means.

Attorney General James indicated that an administrator would set up a website to facilitate the claim.

Delivery offers that worked as Dasher in New York between 2017 and 2019 may be entitled to reimbursement within the scope of the comparison conditions.

Register for our daily news references!

Take your company an advantage with our leading industry knowledge.