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This is clever

DoorDash has been charging iPhone users more than Android users for identical deliveries, according to a lawsuit seeking class action status. The court documents (PDF, via 9to5Mac) submitted for the case included screenshots showing how iPhone users are charged an extra fee for “expanded range.” On the company’s website, it said the fee “helps DoorDash preserve [customers’] access to the available merchants farthest from [them].” However, the lawsuit said the fee is tacked onto iPhone users’ bills more often than Android users’ “likely because studies reveal iPhone users earn more.”

A possibly crude attempt at customer segregation – that hope that you can charge your richer customers more than your poorer ones, therby face two separate demand curves and so increase profit.

Plus you get to charge iPhone users more which is a plus.

26 thoughts on “This is clever”

  1. Bloke In Scotland

    Not sure what the legalities are, but the massive increase in businesses selling globally do lead to different prices for different countries for some products. Others are one price for all.

    This eems to be okay/accepted to do for different countries, not sure logically why it should be different for consumers within a country. Of course within a country it does tend to be that the higher priced goods/services are “better” in some way. Perhaps Doordash shopuld offer iPhone users a different coloured web-site to buy from and justify the increase that way 🙂

  2. Bloke in North Dorset

    In the early days of the WWW airlines offered higher prices to Safari browsers than other browsers. There was a short stink and I haven’t anything since but I don’t remember it going to court.

  3. Bloke in the Fourth Reich

    A common trick among frequent fliers is to book their business and first class tickets from Cairo or similar places. You then have to actually get to Cairo, on a separate ticket, and back again (if you stop short a lot the airline will catch on and charge you the higher fare). Not without additional effort and some risk but the savings can be substantial.

    I wonder if Apple will be sued next for charging more for their hardware than competitors.

    Bloke in the Fourth Reich in Cascais.

  4. Wait, you mean Proctor & Gamble *don’t* make both Tide *and* Ariel? Head&Shoulders, Erble Essenses, *and* Pantene? Crest *and* Oral-B? Nooo!!!!!

  5. “Plus you get to charge iPhone users more which is a plus.”

    Now that this is known, the people who buy I-phones will be clamoring to be charged even more, to prove that they’re special.

  6. @Bloke in the Fourth Reich

    Sounds like there’s an interesting economic study to be made there. People who use that trick are trading time for money – both the time needed to travel to a cheaper starting point, and the time needed to work out the route. Investigating how many people actually do that, rather than going for the most convenient option, might provide some interesting data on revealed preferences for the value of time versus the value of money.

  7. Interesting if true. I enjoy finding about stuff like this, because it provides information to me as a consumer about whether I should still hand over my hard earned to a company based on these policies or not. I’ve not used Doordash and would now be unlikely to.

    Market segmentation is totally legitimate though and Apple vs the rest is a good example. I have mostly Apple products at home. I know I’m paying a premium for a premium product, but am I really paying more vs other premium brands?

    I recently looked at what it would cost me for a new Mac Mini vs an equivalent small form factor PC from Dell. The Dell was actually more expensive. Similar for the top level phones. The equivalent Samsung is about the same price as the Apple. Yes you can get an Android phone heaps cheaper, but it’s not the same product tier.

  8. Product tier?

    Is that where you get charged excessively for features you won’t use just so you can show off?

  9. Starfish,

    I don’t get expensive phones at all. I have a £200 Android that gets me bus times, does sat nav, music, email, takes good enough photos for social media. I don’t get who is spending £800+ on a phone. OK, sure, the processors are more powerful, and you get better geekbench scores but when you see tests of people hitting the same button on two phones, the difference is about zero.

  10. I don’t get expensive phones at all. I have a £200 Android that gets me bus times . . .

    Status display. Having an iPhone Max might help indicate that you don’t take the bus.

  11. “Product tier?

    Is that where you get charged excessively for features you won’t use just so you can show off?”

    In some cases, yes. In others, it’s a better set of features like a higher resolution camera (more cameras even), more storage, faster processor, bigger screen etc. There’s a market tier for everyone really. My phone is around middle of the pack, price wise. Some of those features I don’t need.

  12. Steve said:
    “If I ran an online escort service I’d call it WhoreDash”

    Steve, you could also have a related review site, WhoreScores.

  13. Richard –

    Witchie – and when you catch a dose, it’ll be WhoreSores

    Online Indian doctor from Mysore.

  14. I’m surprised Doordash have missed out on getting a licence from Apple to display their logo on guys bags for overpriced Apple deliveries. Then customers would benefit from their neighbours knowing they ordered on an iPhone.

  15. If I can’t root it and install Lineage OS it’s a deal-breaker, doesn’t matter how much (or how little) it costs.

  16. I’ve done the ‘fly somewhere to fly’ thing. Summer to Singapore when the wife lived there. £1200 each with Qatar from London. £800 from Vienna. Quick BA flight to Vienna, an evening stop in S-in-L’s apartment, onwards. Similar on way back but with just a short day in the city. Sometimes its even cheaper to fly in the opposite direction and come back.

  17. Bloke in the Fourth Reich

    Andrew again,

    I experienced that when I lived in Milan. Return flight from Manchester to Milan regularly around £100, return flight from Milan to Manchester not to be had under €250.

    Presumably people travelling from Milan to Manchester are only doing so because they really have to.

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