ST. PETERSBURG, Fla. — A New York man is suing popular food delivery company DoorDash amid a report the company is taking its customers' tips for itself rather than drivers.
The New York Post reports a customer named Alan Arkin claims DoorDash provided “materially false and misleading” tipping representations on its app. Essentially, customers believed their whole tip would go to its dasher. Not so, apparently.
Last week, a deliveryman writing in the New York Times found the company would guarantee a payout for each delivery. One, for example, offered $6.85 but after a woman tipped $3, he still would take home $6.85 and not $9.95.
DoorDash changed its policy days later after the report.
“Going forward,” DoorDash’s chief executive, Tony Xu, wrote on Twitter last Tuesday, “we’re changing our model -- the new model will ensure that Dashers’ earnings will increase by the exact amount a customer tips on every order."
Arkin summed the previous policy this way, per the Post: "It’s basically a way to make a multibilllion-dollar tech company even richer."
The Post reports the company did not respond to a comment regarding the lawsuit.
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