DoorDash sued by DC Attorney General over 'deceptive' tipping policy - Business Insider

The company's policy at the time meant that, in some cases where the order total plus tips was less than the guaranteed minimum for workers, the tip was applied to the minimum payment, with DoorDash keeping the difference.as media outlets reported on the tipping practice, which many customers were not aware of. Facing complaints from delivery workers and the public, DoorDash then announced a new policy.

"We strongly disagree with and are disappointed by the action taken today," a spokesperson for DoorDash told Business Insider in a statement. "Transparency is of paramount importance, which is why we publicly disclosed how our previous pay model worked in communications specifically created for Dashers, consumers, and the general public starting in 2017. We've also worked with an independent third party to verify that we have always paid 100% of tips to Dashers.

DoorDash is a VC-backed startup that's raised over $2 billion since it was founded in 2013. It was most recently valued at over $13 billion.

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