An Update on Dasher Class Action

By Keith Yandell, General Counsel

Today we announced the tentative settlement of a lawsuit regarding classification of Dashers. We firmly believe that the autonomy and flexibility Dashers love is made possible by, and consistent only with, their status as independent contractors. That said, we feel that this settlement represents a fair compromise, addresses valuable Dasher feedback, and makes changes that will further cement Dashers’ status as independent contractors.

As part of the settlement, we have agreed to pay Dashers $3.5 million upon final court approval, plus an additional $1.5 million in 4 years, when we IPO, when we are profitable for a full year, or if we are acquired at double our current valuation, whichever comes first.

We’ve also agreed to several non-monetary components that will enhance Dashers’ autonomy and address feedback regarding the DoorDash platform. These components include:

  • An updated Dasher deactivation policy, that provides additional clarity around the circumstances in which DoorDash may deactivate a Dasher’s account.
  • An appeals process that allows Dashers to seek review of situations where they feel their account has been wrongly deactivated.
  • A forum for Dashers to share feedback with DoorDash executives.
  • Quarterly surveys sent to Dashers to offer them the opportunity to share feedback with DoorDash.
  • New systems to provide the highest rated Dashers with the ability to do more valuable deliveries.

We look forward to finalizing this settlement and moving forward, so we can continue to focus on offering the best possible experience for Dashers, customers and merchants.