May 28, 2023
DoorDash has been slammed with a $1 billion lawsuit claiming that the delivery app disproportionately charges customers based on the type of phone they're using.
The class action suit against DoorDash, which alleges the service charges more to iPhone users than to Android users, was filed in the U.S. District Court of Maryland on May 5, the New York Post reported.
Ross Hecox, a single father of two who uses DoorDash and subscribes to its exclusive DashPass service, filed the suit. The lawsuit claims the disparity in pricing is “likely because studies reveal iPhone users earn more” and notes the "illegal" fees that customers with Apple iOS devices face.
The plaintiffs claim that DoorDash purposefully employs tactics, which the suit refers to as "money grabs," to systemically mark up orders by as much as $2 for iPhone users compared to users of other devices, even if the order is the same.
The extra fees are marked as "expanded" range charges — which are applied to orders when a restaurant is outside the customer’s “normal delivery area” — although the suit says that DoorDash never clarifies what “normal delivery areas" are.
Among other allegations, the suit also alleges that fees associated with a “delivery area” or “delivery radius” on the app are associated with how much money a restaurant pays DoorDash not the geographic location of the restaurant.
On TikTok, a user with the handle @thelawyerangela posted a video demonstrating how two people ordering the same thing on DoorDash could face different charges. In alleged screenshots of DoorDash receipts, two customers using different phones ordered hash brown bowls and fruit cups from the same Chick-fil-A at the same time. The iPhone user was charged $27.39, while the Android user was charged $26.39.
For its part, DoorDash has denied the allegations of the suit.
“DoorDash does not charge more based on the type of phone you use — period ... We categorically reject the untrue claims in the lawsuit and look forward to vigorously fighting them,” a DoorDash spokesperson told the New York Post.
This isn't the first time recently that DoorDash has been slammed with a lawsuit over its fees. The company was the subject of a 2021 lawsuit in Chicago that alleged the app misled customers and used unfair business practices.