DoorDash Being Sued for Allegedly Charging iPhone Users More Than Android Users

By Ashley Turner

Hungry DoorDash users may want to inspect their bill the next time they order out. A class-action lawsuit against the food delivery service claims that it charges iPhone users more than Android users. An action has been brought against DoorDash in the U.S. District Court of Maryland, alleging that DoorDash engages in "deceptive, misleading, and fraudulent practices" by concealing unfair charges behind certain labels in its service, according to Mashable. Some DoorDash orders have been reported to allegedly include an "expanded range" fee, which is imposed when a restaurant is outside the customer's "normal delivery area." DoorDash charges this expanded range fee in a number of situations where it is not justified, according to the lawsuit. The expanded range fee can be charged to customers who live further away from the restaurant in order to "justify" implementing it, as well as to paid DashPass Program users to cover subscription plan revenue losses.

Moreover, the class-action lawsuit also claims that DoorDash charges the expanded range fee to iPhone users but not to Android users, even when they place the same order for the same delivery location at the same time. "[A]s tests indicate, DoorDash charges the expanded range fee on iPhone users more often than Android users and charges iPhone users more for 'delivering' (likely because studies reveal iPhone users earn more),'" the lawsuit states. "These tactics are simply money grabs." Additionally, the lawsuit alleges the app misleads customers by claiming "normal delivery areas" are determined by geography when in fact, they are established by how much restaurants pay DoorDash. Also included in the suit are allegations that DoorDash's "city" fees deceive customers into thinking the money is actually going to the local government. Further, the lawsuit alleges that even though DoorDash charges an optional $3 "Express" fee, it cannot expedite your order. In a statement to Mashable, DoorDash denied the allegations and argued that the pricing discrepancy could be due to the gradual rollout of new features.

"The claims put forward in the amended complaint are baseless and simply without merit," said a DoorDash spokesperson. "Our priority is to provide the best service possible and ensure there is clarity for consumers that allows them to make informed decisions. We ensure fees are disclosed throughout the customer experience, including on each restaurant storepage and before checkout. Building this trust is essential, and it's why the majority of delivery orders on our platform are placed by return customers. We will continue to strive to make our platform work even better for customers, and will vigorously fight these allegations." The fee structure of DoorDash has been contested in court before. A 2021 Chicago lawsuit claimed the company used "bait-and-switch" tactics by displaying small delivery fees and then adding on additional charges at checkout. Furthermore, the suit contended that DoorDash misled its customers about where their money went, as "the customer 'tip' was used to subsidize DoorDash's own payment to its drivers" and that the $1.50 Chicago fee went into the company's pocket instead of the city's. In 2020, DoorDash agreed to pay $2.5 million to settle a lawsuit brought by the District of Columbia alleging that it misled its customers about the actual destination of their tips.

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