Chicago DoorDash users may soon receive “credits” in their account after a multi-million dollar settlement following a city lawsuit.
Chicago announced late last week that it had reached an $18 million settlement with the popular food delivery app after a lawsuit accused the company of engaging in “deceptive and unfair business practices at the expense of restaurants, consumers, and delivery drivers.”
As part of the settlement terms, both restaurants and users could receive “credits” in their accounts.
Here’s what to know:
What is the settlement for?
According to the city, a lawsuit was filed against DoorDash as part of an investigation into the meal delivery company’s payment and tipping practices.
Under the suit, the city claimed DoorDash “did not initially present upfront the full cost of its service to consumers, imposed a misleadingly named “Chicago Fee” that was not a city-mandated charge, and did not disclose that menu prices on the platform were often higher than prices available directly from the restaurant.”
It said the company “misled consumers” into thinking they tipping their drivers directly, but the tips were actually being used to “subsidize its own payment of drivers.”
The suit also accused DoorDash of listing restaurants on its platform without their consent.
“This settlement demonstrates Chicago’s commitment to standing up for workers and small businesses while maintaining a fair and honest marketplace,” Mayor Brandon Johnson said in a statement. “Our hospitality industry is critical to our economy, and it works best when companies play by the rules, workers are treated fairly, and consumers see transparent pricing. We are proud to have delivered justice and relief to the Chicago workers, small businesses, and residents who’ve been affected by these practices.”
DoorDash said the settlement is not an admission of wrongdoing, but noted that such practices “no longer exist.”
“At DoorDash, we are always listening to feedback and seeking to provide a better experience for everyone who uses our platform. Over the past few years, we’ve worked hard to improve our platform and deliver a better and fairer experience to merchants, consumers and Dashers,” the company said in a release. “We are glad to put this matter behind us, and remain committed to supporting Chicago’s local economy.”
The Chicago settlement comes just over a year after Illinois announced a similar settlement regarding the company’s tipping policy.
What will users see and when?
According to the city, DoorDash will provide $4 million in credits, “which can be applied to food delivery orders,” to eligible users in Chicago who have active accounts on the platform.
The credits will be automatically available in eligible accounts beginning Jan. 28, 2026.
What else is included?
According to a release from Chicago, the settlement terms also include:
- DoorDash will pay $3.25 million to restaurants that had been listed on DoorDash’s platform without consent and are not currently on the platform. Eligible restaurants will receive instructions from DoorDash on how to sign up for payment. DoorDash also agreed not to list Chicago restaurants without their consent in the future.
- DoorDash will provide $5.8 million in delivery commission and marketing credits to eligible restaurants currently on the DoorDash platform. Eligible restaurants that DoorDash initially listed without consent, but have since joined the platform, will receive an additional share of these credits. Eligible restaurants will receive further information about this relief from DoorDash.
- DoorDash will pay $500,000 to drivers who were delivering food orders in Chicago as of September 2019, the last month that DoorDash’s practice of using tips to subsidize driver pay was in effect. These payments will supplement amounts that eligible drivers already received through DoorDash’s settlement with the Illinois Attorney General over the same practice. Eligible drivers will receive notification and payment from the claims administrator for that settlement, Atticus Administration, LLC.
- DoorDash will pay $4.5 million to the City to cover the City’s costs and fees in bringing the lawsuit.
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