DoorDash is facing a lawsuit accusing it of charging iPhone users more for delivery than users of other devices, according to a report by engadget.
A class action lawsuit has been filed against the popular meal delivery service, DoorDash, alleging that the firm charged iPhone customers extra for deliveries that were otherwise comparable to those charged to Android users. The lawsuit asserts that DoorDash added an additional cost called "expanded range" to the bills of iPhone users more frequently than Android users, possibly as a result of studies demonstrating that iPhone customers have higher incomes than Android users.
Screenshots were included in the documents that were filed with the court to support the claim that demonstrated how iPhone customers were charged extra for the increased range. DoorDash's website provided an explanation for the cost, saying that it was necessary to ensure clients could access businesses that were further away from their location.
The lawsuit, on the other hand, asserts that the cost was disproportionately applied to the bills of iPhone users, which suggests that discrimination may have occurred. In addition, the lawsuit claims that DoorDash intentionally included the extended-range price in the total amount that was paid to DashPass users in order to compensate for revenue that was lost due to discounted fees. DoorDash's DashPass is a subscription service that costs $10 per month and entitles customers to free delivery on orders totaling more than $12.
Screenshots that were provided in the court filings demonstrated that the extended-range fee was only added to the DashPass account and not to the identical purchase that was placed without the subscription. This was the case despite the fact that both orders were sent to the same address.
The lawsuit claims that DoorDash engages in misleading business practices by creating the impression for its consumers that the "delivery-related" costs are paid to the drivers, whereas in fact DoorDash keeps the entirety of these payments. Additional screenshots that were included in the court documents revealed that orders placed through an iPhone carried greater base delivery prices than orders placed through an Android device.
In the complaint that was brought before the U.S. District Court for the District of Maryland by Ross Hecox and his minor children, the plaintiffs are demanding monetary damages of at least $1 billion dollars on behalf of all consumers who have been affected by DoorDash's allegedly illegal pricing structure over the course of the previous four years.
In response to the charges, a representative from DoorDash issued a denial of the claims and indicated that the updated complaint was without substance. DoorDash assures charge transparency throughout the consumer experience, including disclosure on restaurant store sites and before checkout, the spokesperson for the company emphasized.
They also underlined the company's dedication to establishing trust and noted that the majority of delivery orders on their platform are placed by returning customers. They stated that the company is committed to building trust. DoorDash has said that it intends to fiercely contest the charges and will also continue to improve its platform for clients.
This is not the first time that DoorDash's business practices have been called into question; the company is currently facing another lawsuit. In 2020, a class action lawsuit was filed against DoorDash and other food delivery services, alleging that they had taken advantage of their dominant position in the restaurant delivery business to impose unreasonable costs on users, even when the COVID-19 pandemic was in full swing.
DoorDash has been the target of legal action for promoting delivery services from restaurants without first acquiring the appropriate approval and for using drivers' gratuities to fund a portion of their base salary. Both of these offenses are illegal.
DoorDash reached a settlement with Washington, D.C., in which the company agreed to pay $2.5 million to put an end to the litigation. The outcome of the action will, as it proceeds, decide the possible impact on DoorDash's pricing practices, as well as the potential compensation that customers who were negatively impacted may receive.