DoorDash to pay Chicago restaurants, drivers $18M over claims of deceptive business tactics
CHICAGO - DoorDash, the food delivery service company, will pay $18 million to the City of Chicago, local restaurants and drivers as part of a lawsuit settlement over alleged deceptive business practices during the COVID-19 pandemic.
What we know:
A city lawsuit accused DoorDash of violating city law by listing restaurants on its platform without their consent, according to a city press release.
The city also alleged that DoorDash did not initially disclose the full cost of its service upfront to consumers, imposed a misleading "Chicago fee" that was not a city-mandated charge, and did not disclose that menu prices on its platform were often higher than prices available directly from the restaurant.
DoorDash was also accused of misleading consumers into thinking they were tipping drivers directly when the tips were actually used to subsidize its own payment of drivers.
As part of the settlement, DoorDash will pay:
- $3.25 million to restaurants that were listed on DoorDash’s platform without their consent and are not currently on its platform.
- $5.8 million in delivery commission and marketing credits to restaurants currently on its platform. Restaurants that were listed without their consent but have since joined DoorDash’s platform will receive an additional share of those credits.
- $4 million in credits, which can be applied to food delivery orders in Chicago to eligible users of the service. Those credits can be used starting Jan. 28, 2026.
- $500,000 to drivers who delivered food orders in Chicago as of September 2019.
- $4.5 million to the City of Chicago to cover the costs and fees for bringing the lawsuit.
What they're saying:
City leaders reacted to the settlement.
"This settlement demonstrates Chicago’s commitment to standing up for workers and small businesses while maintaining a fair and honest marketplace," said Mayor Brandon Johnson in a statement. "Our hospitality industry is critical to our economy, and it works best when companies play by the rules, workers are treated fairly, and consumers see transparent pricing."
In a statement, a DoorDash spokesperson said:
"We’re pleased to have settled a years-old lawsuit with the City of Chicago. To be clear, this settlement isn’t an admission of wrongdoing and the allegations in this lawsuit focus on business practices that no longer exist. We’re glad to put this behind us. Our focus is where it belongs: delivering the best experience for merchants, customers, and Dashers in Chicago."