Does Doordash charge iPhone users more?
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DoorDash charges iPhone users more than it charges Android users, at least according to a class-action lawsuit filed against the company. In the lawsuit, customers allege that DoorDash uses vague fees “delivery charges” fees as a way to mask the higher prices being paid by iPhone users.
According to the lawsuit, DoorDash engages in a “fraudulent scheme to charge and collect misleading, premium, and hidden fees from consumers for deliveries that DoorDash does not perform and for food that DoorDash does not sell.”
The DoorDash customers behind the lawsuit say that the company uses an “Expanded Range Fee” as one way to target iPhone users. The fee, which isn’t listed on DoorDash’s website, has never been directly addressed by DoorDash. While the obvious assumption would be that the fee applies when a customer is far from the restaurant they’re ordering from, the lawsuit alleges that’s not the case. According to the complaint, there is no rhyme or reason as to when DoorDash charges this fee.
The lawsuit also alleges that DoorDash uses the Expanded Range Fee as a way to charge fees to DashPass users. One of the perks that DoorDash advertises for the $9.99 per month DashPass subscription, however, is $0.00 delivery fees.
“In a test on the DoorDash Platform, DoorDash applied the Expanded Range Fee to a DashPass account, but not to a standard account when each account placed the same order at the same time to the same restaurant for delivery to the same home,” the lawsuit says.
On the other hand, however, the lawsuit also says that the Expanded Range Fee is more often charged to iPhone users than Android users regardless of whether or not they subscribe to DashPass. On average, iPhone users also pay higher standard delivery fees than Android users, based on tests cited by the plaintiffs.
“DoorDash charges the expanded range fee on iPhone users more often than Android users and charges iPhone users more for ‘delivering’ (likely because studies reveal iPhone users earn more),” the lawsuit continues. “These tactics are simply money grabs.”
The lawsuit includes multiple screenshots that claim to show iPhone users and DashPass subscribers paying higher fees than Android users and non-subscribers.
As the above tests demonstrate, and upon information and belief and subject to further investigation and discovery, DoorDash routinely charges iPhone users more than Android users for reasons wholly unrelated to delivery and service costs. DoorDash likely charges iPhone users more because studies suggest that iPhone users make more money than Android users.
Under its predatory pricing scheme, DoorDash engineers its fees to reach certain revenue goals without regard to the nature of the fee that DoorDash charges consumers or how they are represented to consumers. These charging practices are abhorrent.
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Hmmm, just spitballing here, but businesses are allowed to charge a credit card price and a cash price… If Apple costs more to develop the app and maintain, then would it be permissible for Doordash to charge more?
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Apple, Inc. charges commissions for “in-app purchases.” That commission may go as high as 30%.
@Axtremus said in Does Doordash charge iPhone users more?:
Apple, Inc. charges commissions for “in-app purchases.” That commission may go as high as 30%.
Not for physical goods - like food.
At least not a few years ago, that might have changed, but I doubt it.
