Chicago Reaches $18 Million Settlement With DoorDash Over Alleged Deceptive Practices

The City of Chicago has secured an $18 million settlement from DoorDash, resolving a lawsuit that accused the food delivery giant of deceptive and unfair business practices that harmed customers, restaurants, and delivery drivers, particularly during the height of the pandemic.

Mayor Brandon Johnson announced the agreement on Friday, saying the settlement will provide restitution to all three groups affected. “This settlement demonstrates Chicago’s commitment to standing up for workers and small businesses while maintaining a fair and honest marketplace,” Johnson said. “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.”

Chicago’s investigation found that DoorDash violated municipal code in several ways during COVID-19, including listing restaurants on the platform without their consent and failing to inform customers of the full cost of service.

The company was also accused of adding a misleading “Chicago Fee” that implied it was required by the city, marking up menu prices beyond what restaurants charged, and giving customers the false impression that their tips went directly to drivers—when, in some cases, they were used to offset DoorDash’s own costs.

DoorDash, in a statement, said the practices in question are no longer in place and emphasized that the settlement does not constitute an admission of wrongdoing. “We’re pleased to have settled this years-old lawsuit with the City of Chicago,” the company said. “To be clear, this settlement isn’t an admission of wrongdoing, and the allegations in this lawsuit focus on business practices that no longer exist.”