This story was produced as part of a collaboration with the Savannah College of Art and Design (SCAD). For our third collaboration with SCAD, we once again worked with students in Paige Gray’s spring semester writing class, this time focusing on the subject of food. With the help of Rough Draft editors Collin Kelley, Beth McKibben, and Sammie Purcell, the students produced stories ranging from the personal to hard-hitting issues like food insecurity.
Third-party food delivery apps such as DoorDash and Uber Eats have a history of questionable practices that negatively affect delivery drivers, customers, and restaurants. Starting in 2019, the Federal Trade Commission (FTC) served numerous class action lawsuits against both food delivery companies.
Since 2023, food delivery apps have been sued for increasing prices, subsidizing tips, and charging specific users more than others. However, many college students believe driving for third-party food delivery companies is their only option to earn a steady income while in school, and some restaurants feel forced to be on these apps or lose much-needed profits.
According to the 2023 Hecox versus DoorDash class action lawsuit, “DoorDash earns millions, if not more, strong-arming drivers and merchants (and forcing them to capitulate to DoorDash’s questionable billing tactics), while consumers bear the unsettling burden of the increased cost from the hidden fees,”
The lawsuit also discussed the tactic DoorDash uses to subsidize tips. In a hypothetical situation, say DoorDash only pays a driver $4 for a delivery. If the customer tips their driver $2, DoorDash will only pay the driver $2, totaling $4 to the driver.
“Tipping the driver is essentially tipping the app,” former DoorDash driver and Emory student Alex Raymond said. “I drove over an hour to three different stores, and the order had to cost $100. I got paid less than $8, even though the app said they tipped me $6.50.”
The lawsuit caused DoorDash to pay $16.75 million in damages to delivery workers.
On May 23, 2023, DoorDash was named in a $1 billion lawsuit for charging iPhone users more than Android users. The lawsuit claimed that DoorDash used “deceptive, misleading and fraudulent practices” and up-charged Apple iOS devices with “illegal” fees.
When reached to learn more, DoorDash declined to comment on the lawsuits or practices in question.
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The FTC also investigated other food delivery apps. Uber Eats is currently involved in a class action lawsuit for charging customers without their consent, automatically enrolling users in the premium subscription, which takes 23 different screens to unsubscribe. Grubhub paid $25 million to settle its class action lawsuit due to blocking restaurants from accessing the profits made on the app. Grocery delivery service Instacart was involved in a class action lawsuit for illegally underpaying its shoppers.
But, juggling being a full-time student and the need for an income, some Atlanta college students said they feel stuck working for these third-party delivery companies.
“I don’t know what else I would have done besides DoorDash,” said Mercer University graduate and former DoorDash delivery driver Sarah Awad, who became a driver for DoorDash to pay a parking ticket. Deliveries sent her to dangerous places at night, she said, making her feel unsafe.
Some students said they struggle financially because of low wages paid by services like Uber Eats and DoorDash.
“There were orders where I lost money from how much it cost for the gas versus how much I made,” said DoorDash delivery driver and SCAD student Demetric Antonio. Driving for DoorDash, Antonio said he makes an average of $6 per hour, “They would give me nickels and dimes.”
Then there are the hidden fees and markups that often overcharge customers. In-store, an item may cost $5, but it is listed as $7 on a delivery app. In addition to a service fee to help apps stay online, estimated tax, convenience fees, and a tip, customers may pay double the cost for their food delivery through a third-party app versus ordering food for takeout at a restaurant.
With the rise in popularity of food delivery apps, many restaurants feel forced to enlist these services or risk going out of business. In a 2024 survey, 70 percent of customers said they prefer ordering online rather than eating at a restaurant. In turn, restaurants with a presence on food delivery apps noted a 30 percent increase in takeout profits.
Yet high commission fees and loss of control over the food once it leaves the restaurant have left owners questioning whether these third-party apps are worth the time, the money, and the hassle.