A lawsuit is accusing DoorDash of charging iPhone users more than Android users for identical deliveries, Insider reported.
Screenshots presented in the case showed how iPhone users are charged an extra fee for “expanded range.” DoorDash says the fee “helps DoorDash preserve [customers’] access to the available merchants farthest from [them].” But according to the lawsuit, the fee is applied to iPhone users’ bills more often than Android users’ “likely because studies reveal iPhone users earn more.”
DoorDash is also being accused of using the extended range fee as a way “to subsidize lost revenues from discounted fees.”
“DoorDash uses this deceptive practice to trick consumers into believing Dashers receive the ‘delivery-related’ fees when, in reality, each and every ‘delivery fee’ is retained in total by DoorDash,” states the lawsuit, which is asking for monetary damages of $1 billion “for all consumers who fell prey to DoorDash’s illegal pricing scheme over the past four years.”
In a statement to Insider, a spokesperson for the company denied the allegations.
“The claims put forward in the amended complaint are baseless and simply without merit. We ensure fees are disclosed throughout the customer experience, including on each restaurant storepage and before checkout,” the statement read. “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.”
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