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Amazon, DoorDash, Instacart, and Whole Foods Delivery Tip Fraud

Zimmerman Reed is investigating numerous app-based delivery companies’ deceptive and questionable practices of using voluntary tips from customers to subsidize their own labor costs. Customers already pay substantial service and delivery fees for these app-based services, but are also asked to leave a tip through the app. Many customers believe that by leaving a tip, they are giving the delivery person additional compensation. That isn’t always the case. If you left a tip on one of these apps, please fill out a Free Case Review Form.

As reported by Quartz in July 2019:

DoorDash promises workers, which it calls Dashers, a “guaranteed minimum” payment on each order. It counts customer tips toward that minimum, rather than on top of it. In any of these cases, the outcome for the worker is the same, regardless of whether you tip.  As long as your tip counts toward the guaranteed order minimum set by the company, it doesn’t matter to the worker whether you left it or not; they get paid the same. As such, the tip only benefits the company because it reduces what they pay the driver.

Here’s an example: DoorDash promises a driver that they’ll earn a $3 minimum for delivering your order, which the driver accepts. You tip $2 using the DoorDash app. The driver should earn $5, right? Wrong – the driver still earns $3: $1 from DoorDash and your $2 from your tip. This is outrageous conduct that harms both the drivers and the customers. The only winner is the multibillion-dollar delivery company.

Take Action – Submit Free Case Review Form

Background

Many states do not allow companies to pay workers less if they receive tips. Most consumers would not leave tips on top of the substantial delivery and service fees if they knew the tip would not benefit the driver and was actually subsidizing the business instead.  This is especially true given the meager amounts paid to drivers by multibillion-dollar tech giants like Amazon, DoorDash, and Instacart.  While the companies claim to have recently stopped these practices, some media reports suggest that’s not true.

Please complete a Free Case Review Form if you left tips for delivery drivers using an Amazon, DoorDash, or Instacart app, as you may be entitled to refunds and other compensation.

Take Action – Submit Free Case Review Form

How We Can Help

Zimmerman Reed is investigating claims against Amazon, DoorDash, and Instacart based on these practices. If you would not have left a tip had you known the delivery driver received no benefit, you may be entitled to compensation.

To submit a Free Case Review Form and obtain a free and confidential review of your potential claim, please CLICK HERE. It only takes a few minutes.

Take Action – Submit Free Case Review Form

Amazon, DoorDash, Instacart, and Whole Foods Delivery Tip Fraud Free Case Review

Fill out the free case review form below or call us at 1.888.485.4366 to speak to a legal professional
concerning your possible claim.

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Your Team

Gordon Rudd
Gordon Rudd | Managing Partner

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Flinn Milligan
Flinn Milligan | Attorney

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Hart Robinovitch
Hart Robinovitch | Attorney

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Irene Schwieger
Irene Schwieger | Attorney

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Caleb Marker
Celeb Marker | Attorney

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Erin Pesic
Erin Pesic | Legal Assistant

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Take Action

To submit a free case review form, which only takes few minutes, please CLICK HERE.

Take Action – Submit Free Case Review Form