Not sure if the lawyers and the government are just milking delivery platforms that are becoming popular nowadays, such as DoorDash, but in case you don’t know, the online food ordering and delivery giant is bound to pay settlements worth a whopping $16.75 million!
However, if you think that DoorDash is shaking and rattled about where to get that amount, capital specialists are saying, “DoorDash will be just fine,” and that the settlement is, well, now just an afterthought.
Jeff Siegel of Energy & Capital stated in his story on the website that because of the company’s solid fourth-quarter earnings last year, analysts increased price targets to approximately $240 per share, which is a potential 20 percent gain based on current ranges or labels.
“Worth noting: had you picked up a few shares of [DoorDash] just two years ago, you’d be up around 233 percent today. Not too shabby,” Siegel wrote.
Nonetheless, he clarified that he is “disgusted” by the platform’s cheating of drivers out of their own tips, but DoorDash can easily regain its composure now that “shareholders are still in a good place with the stock.”
“As much as I hate to say it, what DoorDash did to its drivers will soon be forgotten. And life will go on. Because make no mistake: while one underhanded con fades away into the abyss of history, new ones appear,” the capital expert pointed out.
So, how did DoorDash get to this? Well, right now, DoorDash riders in New Year receive an extra tip, one that they’ve been owed for over half a decade. However, instead of giving these Dashers or drivers the money in the form of tips, the company used it to cover base pay and pocketed the rest.
Now, the company has been overseen by Letitia James, the Attorney General of New York, who is asking it to pay $16.75 million to over 60,000 Dashers who were tricked into receiving tips but did not.
“Delivery workers are integral to our communities, working tirelessly to bring food and other essentials directly to our doorsteps in all conditions. DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full,” James told the media. “This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward. My office will continue to protect New York workers from deceptive business practices and ensure they receive all of the money they’ve earned.”
That’s a huge amount of money, but thanks to DoorDash investors and shareholders, capital specialists believe they might be able to pay the settlement quickly.