In a wage-theft settlement, DoorDash now has to pay its workers around 100 times what it spent trying to beat Zohran Mamdani.

348 points•vrganj•7 days ago•189 comments•

189 comments

dayvid7 days ago
Ever since it was found that they took part of driver's tips for themselves, I didn't trust the company https://www.theguardian.com/us-news/2025/feb/27/doordash-new...
scrapcode7 days ago
I feel like I recall this being a thing from close to the very beginning?

I've used one of these delivery services directly only once since they've all existed. They have been pretty blatant scum since the rip.

dzonga7 days ago
services like door-dash are literally built on a concept of a sucker pays more. you order a meal that costs $10. total charge comes to $25. then delivery worker made $5 on that order. + the delivery worker expects a tip.

which means the company sees both the delivery worker and the person who ordered as suckers. no wonder ride-share companies jumped onto food-delivery.

sokoloff7 days ago
I don’t think paying someone to perform a service for you makes you a sucker.

I’ve never used DoorDash (and am pretty unlikely to), but if I did, I would look at as paying someone for a service they provided rather than simply “paying more for the item” (and expecting someone to wait on me personally for free?).

wat100007 days ago
It’s not like they hide anything about what they’re offering. They advertise service X for price Y and that’s what they deliver. Seems fine. If you don’t think Y is worth it for X then don’t use it.

Now, the part where they use tips to offset driver pay is evil and people should be in prison for it.

BeetleB7 days ago
It's been years since I used DoorDash, so I don't remember: Are you saying they don't charge any fees other than the (inflated) price of goods?

I'd rather the price of goods be fixed, and they tell me what the delivery fee is.

malfist7 days ago
> literally built on a concept of a sucker pays more

Or they're built on the idea that they can sell convenience to people and make a lot of money doing so.

It's not so different from a lot of other businesses. First class and main cabin in a flight gets you the same airplane, the same destination the same travel, but slightly different chairs and some food. Is anyone paying for first class suckers? What about if I buy a skip the line pass at a theme park? Am I a sucker because I paid more than the base admission price? Or is it a trade that I'm willing to make because I have excess income and want to actually ride the rides instead of standing in line all day in the heat?

Why do executives have executive assistants? Are businesses all suckers?

I know I'm getting ripped off by doordash, but I'm hungry and I'm busy and the harm of getting ripped off just a bit is way lesser than the time it'd take me to get or prepare food myself. That $10 hamburger that I just paid $25 for is outrageous, but the 30 minutes I saved is worth the $15. If you make mid-six figure income like most of big tech, that's a small small price to pay for time.

ndriscoll7 days ago
Skip the line passes are an obvious sucker play; they oversell tickets to the park so that people can go on like 1 ride every 4 hours, then charge again to actually be able to use the ticket you already bought (and simply don't deliver service to the others). Do you think they are unaware of the capacity at which reasonable latencies can be maintained?
bluegatty7 days ago
"It's not so different from a lot of other businesses. "

It's quite different and that's the point.

The issues beyond 'apparent value creation are':

1) asymmetries in power between different actors that induces some to make ill advised actions - passing off hidden costs and especially risks

2) externalisations - aka damaging the environment, labour regs (which exist due to 1)

3) misrepresntations in value to end customer - dark patterns, hidden fees, risks not apparent in the transaction.

Entire industries would not work if we had to properly account for a lot of things.

"I know I'm getting ripped off by doordash, but I'm hungry and I'm busy and the harm of getting ri" <- it's not just the 'price' that is high and you're 'willing to pay' - that's fine.

That's definitely not 'rip off' because you're not coerced in any way for that - that's just 'high prices.

The $10 bottle of water at an event <- that is a 'rip off'.

It's all the other things in the system that make it problematic.

Last mile delivery by poor people almost should not exist as a business because it depends on externalizing too many things.

If they provided healthcare, vacation, job security, didn't force people to run around, all that stuff that removes the 'power and information asymmetry' - and then - it still works as a business, fine but it generally wont.

Some businesses are structurally unsound, and people invest in them to take advantage of broken systems (social, regulatory) at the margins. Gambling, day trading. A lot of zero-sum stuff.

Now 'Robot Delivery' - that's an entirely different prospect.

That's an attempt at real value creation. If we got our act together, everything could be delivered by little robots - today - already in 2026. It would reuire a lot of coordination.

trhway7 days ago
> That $10 hamburger

fast-rise sugar infested bun, non-organic antibiotic infested horrendous animal welfare beef, etc. - the BOM is well under $5, i'd think $3 at best. So, you pay $25 for sub-$5 bill of low quality materials (not good to your health with thus additional expenses down the road). Who is the sucker?

wombat-man7 days ago
I think there's a business there, for sure, but the markup is definitely a problem for some. I think below a certain order volume it might be hard to get enough delivery people at the ready. As they ask customers to absorb more of the cost the volume could drop. If they don't have enough delivery people then that adds to the delivery time which makes it less and less worth it, at least to me.

I really dislike the unreliable delivery times. 99% of the time I just use the apps, or more likely the restaurant's site, to place the order and pick it up myself.

I have the time to do this though, so maybe it's more valuable to busier people, like parents.

peezd7 days ago
It's just a standard reintermediation play, inject yourself in the middle of a supply chain, and then once established squeeze the living shit out of both sides.

Also use exploitation of regulation (e.g. leveraging contractors via 1099s to access cheap labor and indemnification from liability) to your advantage .

this was the model of like 2/3 of the 'startups' in the 2010s.

ehe78qhe7 days ago
I thought they were built on "time is money". If you make the equivalent of $70 an hour, do you care about spending $15 for someone to bring you lunch and save you 15-30 minutes of your workday?
itopaloglu837 days ago
It’s not just “time is money”, but also the convenience as well. Sometimes you’re sick and need a hot meal, or you’re busy helping someone, etc.

Edit: Spelling. “right” to “sick”.

odyssey77 days ago
It was kind of fun doing this math back when I was a freelancer. An hour saved would literally produce more money than the order cost. But really, it would have been better to save the money by making food ahead of time.
kelnos7 days ago
This sort of framing is never really valid, because when we go out to pick up our lunch, we generally do not lose part of our wages (for salaried employees). We may stay in the office a little bit longer to make up for it, but then that's a completely independent decision about how much that time is worth to us, plus how much we are willing and able to pay for that time.

You might say "going home from the office 30 minutes earlier is absolutely worth $15" to me, but that has little to do with what your effective hourly wage is.

dieselgate7 days ago
The gig workers are still suckers because gig work sucks. But yes the service is most sensible for higher paid consumers.
someonebaggy7 days ago
Tony Xu spent three times as much time as the driver did, did he?
handfuloflight7 days ago
This just translates to "anyone paying a margin on anything anywhere is a sucker."

You're definitely a sucker too, probably multiple times over.

Aunche7 days ago
Even though the press likes to give Mamdani all the credit for these types of things, this started with a law passed under DeBlasio, and most of the investigation was done under Adams.
xrd7 days ago
Mamdani deserves credit for taking this all the way.

Adams was "indicted in September 2024 on federal charges including bribery and wire fraud, accused of accepting over $100,000" from Turkey. He's now an Albanian citizen, because "he loves travel."

I don't really agree that this judgement would have happened with anyone as mayor. That road is long and paved with gold distractions.

Aunche7 days ago
Yes, the road is long and these sorts of investigations take time. Eric Adams is an old-school, working-class New Yorker. They tend to be corrupt, but they do get stuff done. His administration resolved a $20M Chipotle lawsuit, then launched and resolved a $39M Starbucks lawsuit.
giancarlostoro7 days ago
> taking this all the way.

How did you arrive to this conclusion?

devindotcom7 days ago
really we should be giving credit to hammurabi for developing the idea of laws in the first place. where would deblasio be without him??
Aunche7 days ago
Is that the explanation your boss forced you to accept when you did 90% of the work and he took all the credit?
tclancy7 days ago
>most of the investigation was done under Adams.

Better than about him like the rest of it, I suppose.

Freedom27 days ago
Perhaps we should give credit to Adams' parents for having a child, else the investigation would have never kicked off.
consumer4517 days ago
Josh Johnson has a great bit about Mamdani:

https://www.youtube.com/shorts/SCKj7gwbYrc

time4tea7 days ago
What does "this is not a pay wall" mean - if I have to give personal information over, that is a price.

Didn't read - too expensive.

pluc7 days ago
Your identity isn't considered of value to you, you can't monetize it. We can, but since it has no value to you, give it to us for free.
rurp7 days ago
Disabling javascript let me read the whole article without any account nonsense.
andrewflnr7 days ago
Firefox reader mode also did it.
hapax_legomena7 days ago
I just reload the page and hit 'esc' a bunch of times right after it loads but before the paywall pops up. Works on 3/4 of these soft paywalled sites.
rsingel7 days ago
Journalism is labor
jgalt2127 days ago
Information wants to be free. But other than AI slop (where the tokens have become too cheap to meter), information costs money to produce. Pay with you info or your money. It's amazing how many people just cannot come to grips with that concept.
cgio7 days ago
I am so trained now, that I didn’t even read what they were asking for. Just closed the tab and came here to see if there was anything of value. Too expensive to even read their wall.
qurren7 days ago
Yep this is what I did as well. I also just close tabs if it ever pops up a "sign up for our newsletter" thing.

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