DoorDash sued $1 billion over allegations that it overcharged iPhone users

• Single father Russ Hickox has filed a class action lawsuit in Maryland
• The lawsuit cites numerous examples in which iPhone users are charged more for delivery than Android users — despite matching orders and addresses.
• Democrats have called for more transparency in food delivery services

Food delivery app DoorDash has been sued for $1 billion amid accusations that it charges customers who use iPhones more than those who use Android.

Screenshots filed in a class action lawsuit show iPhone users were routinely charged $1 to $2 more than an Android customer for delivery on similar orders.

The lawsuit speculates that the reason for the discrepancy is that studies show that iPhone users tend to make more money than those who use different devices.

DoorDash — which has an estimated 32 million users — also faces charges of charging customers extra fees for its $9.99 per month rebate Dashpass service.

Single dad Russ Hickox filed the class action lawsuit in the U.S. District Court of Maryland, claiming that the company spreads “deceptive, deceptive, and fraudulent practices.”

DoorDash has responded strongly to the allegations, which it says are “baseless and unfounded.”

The primary charge facing the company is “extended bandwidth fees” that appear to be calculated at random.

DoorDash says on its website that the fee—usually a dollar or two—is to “maintain your access to available merchants furthest from you.”

Hecox ran a series of tests on the app after suspecting it was unfairly calculating delivery fees depending on the device they ordered from.

In one example, he submitted requests from different physical locations, about 15 miles apart.

The orders were exactly the same: avocado, egg whites, spinach and cheese on a sprouted grain bagel and a Panera chain chocolate chip cookie.

They were placed at the same time with the same tip and each had a subtotal of $7.98.

However, in testing, the iPhone user incurred an “extended fee range” of 99 cents while the Android user did not.

Then Hecox ran a second test with Chick-fil-A — although they were placed at slightly different times — and found that the iPhone user was charged an extra $1 for delivery.

And in the third example, he made the same orders to the same addresses — but this time they were both filed from the same physical location.

On that occasion, an iPhone user was inexplicably charged an extra $1 for delivery and handed the 99 cent “extended range fee” — while Android received neither.

That means the iPhone user was charged $27.52 while the Android user was paid $25.53 even though Chipotle orders are identical.

In all, Hecox ran seven tests that all appeared to show that a user’s iPhone purchases cost more than their purchases.

The test also covered types of devices including IOS products such as iPhones, iPads, Macbooks and various Android platforms.

The complaints read: “As the above tests demonstrate, based on information and belief and subject to further investigation and discovery, DoorDash routinely charges iPhone users more than Android users for reasons that have absolutely nothing to do with delivery and service costs.

DoorDash is likely to charge iPhone users more because studies show that iPhone users make more money than Android users.

“These tactics are just money grabs,” he adds.

Separately, the lawsuit also raises concerns about the app’s discount service DashPass — a $9.99 per month service that entitles users to free delivery on all orders over $12.

Hecox claims that its tests prove that DashPass customers are more likely to be hit by “extended bandwidth fees” than those who don’t pay for the services.

However, in a test on the DoorDash platform, DoorDash applied the extended 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 complaint read.

Hecox is seeking $1 billion in damages “to all customers who fell prey to DoorDash’s illegal pricing scheme over the past four years.”

This is not the first time delivery companies have come under scrutiny regarding delivery fees.

In February, a group of Democratic senators called on Uber, Grubhub, and DoorDash to provide more transparency about their use of so-called “spam fees.”

President Joe Biden is lobbying against unwanted charges being carried out by a range of companies including internet services, airlines and providers of concert tickets.

And in 2021, DoorDash was hit by a lawsuit in Chicago that accused it of using “bait-and-switch” tactics where they offered smaller delivery fees up front — before adding additional costs right before checkout.

The company also paid $2.5 million in 2020 to settle a lawsuit in Washington that accused it of misleading customers about where their tips went.

Of the recent allegations, a DoorDash spokesperson told Business Insider: “The allegations made in the amended complaint are without merit and simply without merit.”

We ensure that charges are disclosed throughout the customer experience, including on each restaurant’s store page and before checkout.

“Building that trust is essential, which is why the majority of delivery orders are placed on our platform by returning customers.

“We will continue to strive to make our platform work better for customers, and we will vigorously combat these allegations.”

Dailymail.com has also reached out to DoorDash for comment.