DoorDash settles lawsuit with Chicago for $18 million

Flashback: In 2021, the city sued DoorDash, alleging the company was administering hidden fees to drivers and customers and that it was listing restaurants that had not agreed to participate in the delivery service.

• At the heart of the lawsuit was DoorDash listing a "Chicago fee" in its costs, which wasn't a formal city tax but instead fees implemented by the company.
• DoorDash says those practices were discontinued even before the lawsuit was filed. Lawyers for DoorDash say the accusations were based on business practices dating back to 2017 that were discontinued six years ago.

The fine print: Of the $18 million, DoorDash will pay about $13 million to restaurants that were listed on the platform without consent and drivers who worked for the company up to September 2019, and offer credits to consumers who have active accounts on the platform.

• Those credits will be available starting Jan. 28, 2026.
• DoorDash will pay $4.5 million to the city for costs and fees.

What they're saying: "We're pleased to have settled a years-old lawsuit with the City of Chicago," a DoorDash spokesperson said in a statement. "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. We're glad to put this behind us."

The other side: Even though the Lightfoot administration brought the lawsuit, Mayor Brandon Johnson is taking credit for the result.

• "This settlement demonstrates Chicago's commitment to standing up for workers and small businesses while maintaining a fair and honest marketplace," Johnson said in a release. "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."

The bottom line: The lawsuit isn't the end of delivery fees, but it will force companies to continue being transparent about what the fees are.