DoorDash faces a $1 billion lawsuit after the delivery app was accused of charging higher fees for iPhone users compared to Android users. The lawsuit claims the reason behind this price hike is “likely because studies reveal iPhone users earn more.”
The lawsuit was filed earlier this month on May 5th in the US District Court of Maryland and states “deceptive, misleading, and fraudulent practices with illegal fees” only for iPhone users, up to a $2 difference over orders placed on Android devices.
The allegedly illegal “expanded range” fee is intended for orders outside a “normal delivery area,” however the lawsuit claims DoorDash never set clear boundaries in an attempt to bring in some extra revenue by confusing some of its 27 million consumers.
Other fees such as “delivery area” or “delivery radius” are said to be based on what a restaurant will pay DoorDash and has nothing to do with the location of either the customer or the restaurant. Additionally, DoorDash is accused of intentionally sending orders to restaurants when closer locations were available, increasing delivery fees.
In response, DoorDash releases a statement, saying:
“DoorDash does not charge more based on the type of phone you use – Period. Any allegation that we deliberately charge iPhone and Android users differently or only charge DashPass members an expanded range free is blatantly false. We categorically reject the untrue claims in the lawsuit and look forward to vigorously fighting them.”
Sources state screenshots are included in the lawsuit showing the difference between two Chick-Fil-A orders placed on different devices. The iPhone was charged an extra $1 for a delivery fee while the Android phone was not. Other screenshots also show a price difference ranging from $1-$2 more on average.
DoorDash claims this was a “hokey experiment” and that the Android phone had utilized some type of promotion or other discounts to get a different price. Regardless, the lawsuit has been filed, and already members are deleting their accounts in disgust.