Aug 27, 2021 Get the Facts

DoorDash Responds to Baseless Lawsuit from City of Chicago

Standing with the people of Chicago, as we’ve always done

Today, we learned that the City of Chicago filed a lawsuit against DoorDash, in addition to another third-party delivery platform, alleging unfair business practices. This lawsuit is without merit and a waste of taxpayer resources. Chicagoans should be outraged. DoorDash has stood with Chicago’s restaurants to help keep their businesses afloat through the COVID crisis, providing a flexible, low-barrier way for Dashers to earn a living, and delivering safely and reliably to residents across the City – which makes this lawsuit extremely disappointing given our ongoing partnership with the City.

The truth is, DoorDash has been a diligent and supportive community partner, uplifting merchants in Chicago and communicating regularly with the City to help rebuild the local economy. From reducing our commissions at the start of the pandemic to donating $500,000 in grant money to help restaurants survive the winter when indoor dining was banned by the Lightfoot administration — we have worked hard to ensure that local businesses could continue to thrive despite the challenges. In addition, our five-year, $200M Main Street Strong Pledge is one of many relief and support initiatives we’ve rolled out over the past year to help independent restaurants navigate the difficulties of operating during a pandemic.

Setting the record straight

DoorDash has never wavered in our commitment to strengthening each and every community that we have the privilege of serving. We feel that we owe it to the people of Chicago to set the record straight by correcting the false and misleading information alleged in the suit. 

The City of Chicago erroneously alleges that DoorDash is adding merchants on our platform without their consent. That is false. Today, new restaurants listed on DoorDash first sign a contract in which they agree to be listed, and they can choose from a variety of products and services, with flexible pricing options to meet their needs.  Any restaurant that was previously listed on our platform without first having signed a contract can notify us that they no longer wish to be listed on DoorDash, and we honor such requests. 

The suit also makes a variety of claims about the prices consumers agree to pay when they place an order on DoorDash — all of which are false. The fact is that customers know exactly how much they’re going to pay for their order before they check out. Restaurants are responsible for setting their own menu prices on DoorDash, which we disclose on menu pages, and customers see exactly how much they will pay for each item they order. Similarly, customers know exactly how much they pay in the fees that help us operate our business. DoorDash discloses all fees to customers before check-out, including service fees and small order fees (if applicable). 

Simply put, this lawsuit isn’t about the facts, it’s a cynical and desperate ploy to distract from the urgent needs facing Chicago’s small business community and residents. From suggesting we meddle with Dasher tips – Dashers will always receive and have always received 100% of their tips – to claiming we are not transparent with our consumers and our merchant partners, the City of Chicago’s suit is baseless and wrong, and we will vigorously defend ourselves.

Our continued commitment 

DoorDash has been a partner to the City of Chicago for years, and we value our role in the community, creating economic opportunities, helping businesses succeed, and offering an important service to customers in all corners of the city. Unfortunately, the City’s meritless actions seem to be politically motivated at a time when our leaders should be focused on supporting and serving the needs of local businesses, consumers, and workers. Chicagoans should be outraged at this wasteful use of tax dollars. They deserve better. 

Despite this disappointing development, DoorDash will continue to do what we always have: connect people with the best in their cities. We know that actions will always speak louder than words, and so it is our hope that our conduct over the past year and a half has demonstrated our commitment to supporting and uplifting this city, its restaurants, and its people.