Make your voice heard and make DoorDash pay: These are your options!
The food delivery industry has transformed from an industry of humble roots to a bustling industry that might become the preferred way consumers choose to dine out in the future. Think about how the outbreak of COVID-19 has helped food delivery companies expand their market shares.
At the head of the food delivery class sits DoorDash, a San Francisco headquartered company that exemplifies the rapid rise of the food delivery industry. Founded in 2013, DoorDash quickly emerged as one of the major players that uses an app to deliver food orders that come from local bars and restaurants. Using advanced logistical software, DoorDash connects the closest driver to a bar or a restaurant to pick up and deliver food in a timely manner.
Becoming an industry leader can lead to unwanted scrutiny from media outlets, and that is exactly what happened to DoorDash in 2019. Several prominent publications that include Vox and The New York Times ran stories that claimed DoorDash scammed drivers out of tips. The articles primarily stemmed from a class action lawsuit filed by a DoorDash customer, which derided the food delivery company for its “false and misleading” tipping policy. DoorDash also has faced several other legal actions that claim the company violated state and/or federal laws.
Because of the increase in legal action, DoorDash is currently working to modify the company’s dispute resolution process.
A federal judge presiding over a San Francisco jurisdiction recently ordered DoorDash to use binding arbitration to settle more than 5,000 worker disputes. The ruling by the judge might cost the food deliver company millions of dollars.
United States District Judge William Alsup ruled that for several years, workers had to deal with a dispute resolution process that heavily favored DoorDash. Judge Alsup stated the rigged dispute resolution process took away the right to file a claim in binding arbitration. “The irony, in this case, is that the workers wish to enforce the very provisions forced on them…,” he said in a statement.
As with other food delivery companies, DoorDash includes a binding arbitration provisions in its terms of service policy. However, the company refused to go through the binding arbitration process with thousands of workers, many of which comprised the team of drivers that pick up food from local bars and restaurants. In October of 2019, the American Arbitration Association demanded that DoorDash pay more than $12 million in administrative fees to arbitrate the thousands of cases the company should have arbitrated in the first place.
In addition to binding arbitration, anyone that has a legal issue with DoorDash can file a claim in small claims court, as well as submit a formal complaint with the Consumer Financial Protection Bureau (CFPB) and/or the Better Business Bureau (BBB).
Like other companies, DoorDash included a binding arbitration provision within its terms of service policy to avoid going through costly and time consuming class action lawsuits. The alternative consumers and employees have to filing a class action lawsuit is to take DoorDash to small claims court. Federal law limits the amount of money awarded in small claims court to $10,000.
If you file a claim against DoorDash for monetary damages that exceed $10,000, you should consider going through the binding arbitration process. Although a financial award between $2,500 and $10,000 is a possible result of filing a small claims court case, the judge presiding over the case might issues a non-monetary award that makes DoorDash alter its business practices.
Contacting the CFPB represents an action that supplements the filing of a claim in small claims court or participating in the binding arbitration process. As the leading government advocate for consumers, the CFPA reviews complaints filed against DoorDash, before deciding whether the company violated one or more worker and/or consumer protection laws. The CFPB posts valid complaints submitted by consumers and employees on its website. Posting consumer complaints online applies pressure on DoorDash to change its unethical business practices. The CFPB also possesses the legal authority to suspend business licenses, as well as shut down companies that commit frequent violations of the same federal laws. But this doesn’t help you as the consumer, if you deserve compensation. It merely holds DoorDash more accountable.
With no legal teeth to enforce state and federal laws, the BBB still can dramatically change the way an unethical company conducts business. The BBB accepts consumer complaints, and after vetting each complaint for authenticity, posts valid complaints on the organization’s website. In addition, the BBB mediates disputes between businesses and aggrieved parties. Since April of 2017, the BBB has handled more than 60 complaints against DoorDash filed by consumers and employees. The consumer advocacy organization also issues a rating for every company. But again, this isn’t going to land money in your pocket, money you deserve.
Arbitration is your best bet for getting compensation. DoorDash refused to participate in the company’s binding arbitration process because the large number of complaints would have ended up costing the food delivery company thousands of dollars. As it turns out, the American Arbitration Association levied a fine of more than $12 million to punish DoorDash for not following its own binding arbitration rules.
A standard binding arbitration hearing starts with both parties agreeing in a neutral third party to hear the case. The decision issued by a neutral arbitrator represents the last word on the case. Neither party can file an appeal to reverse an unfavorable decision. FairShake representatives closely follow the binding arbitration guidelines established by the American Arbitration Association.
Who pays for the cost of a binding arbitration hearing? The answer is either the complainant or the company that received the formal legal complaint. In some cases, a binding arbitration policy forces both parties to chip in for paying for the process. The recent court decision forcing DoorDash to settle disputes via binding arbitration has not given the company enough time to develop a policy that determines which party pays the cost pf binding arbitration cases.
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