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DoorDash Steals From 63,000 Drivers: The Week That Was #12

DoorDash just got slapped with a $16.75 million settlement by the New York Attorney General for playing fast and loose with customer tips.

This week is getting dodgy - quickly…

  • Apple's DEI Triumph: 97% Shareholder Approval Boosts Inclusion Initiatives

  • Fiverr's AI Overhaul: Empowering 4 Million Freelancers with Cutting-Edge Tools

  • The $500,000 Gender Pay Gap: Unveiling the Financial Disparities Facing Women

  • Loxo is the newest Unicorn

  • DoorDash's $16.75 Million Settlement: Unpacking the Tip Misappropriation Controversy

Let’s talk DoorDash

This whole mess is a textbook example of why trust is the new currency in the gig economy. DoorDash might’ve “updated” its tipping policy back in 2019, but this settlement shows that the bad taste lingers. The takeaway? Customers want to know their money's going where they think it is, and gig platforms better get with the program—or get regulated into it.

The Story:

DoorDash just got slapped with a $16.75 million settlement by the New York Attorney General for playing fast and loose with customer tips. Between 2017 and 2019, DoorDash was caught using tips to subsidize workers’ base pay instead of adding it on top—basically, the ol’ switcheroo. About 63,000 Dashers in New York got burned by this, thinking their tips were extra cash when they were really just covering the company’s tab.

Under this deal, Dashers are finally getting a payday, with some set to pocket up to $14,000 each. Plus, DoorDash is now required to clean up its act and make sure 100% of tips actually go to the drivers—no more shell games. This is a big win for gig workers who’ve been nickel-and-dimed by tech platforms that love to talk transparency but rarely practice it.

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