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Investing.com -- DoorDash (NASDAQ:DASH) stock rose 1.5% despite briefly spiking lower after Culper Research released a short report alleging the food delivery company has been systematically onboarding unauthorized workers.
The short seller claims DoorDash created a "backdoor" onboarding process in late 2021 by dropping Social Security Number requirements and allowing delivery couriers to verify using Individual Taxpayer Identification Numbers (ITINs), which don’t confer work authorization. According to Culper Research, this scheme may have resulted in unauthorized workers handling between 26% and 57% of the company’s deliveries.
The report alleges DoorDash implemented this change after being confronted by the IRS over SSN fraud on its platform. Former employees reportedly told Culper that deplatforming fraudulent drivers "would have led to a complete stall in operations" due to the company’s reliance on these workers.
Culper Research also claims regulators are cracking down, citing an "unprecedented" ICE/IRS partnership starting April 2025 that puts ITIN holders and their employers under federal scrutiny. The short seller further suggests DoorDash may be subject to an undisclosed SEC investigation based on a July 2025 FOIA request.
The report warns that even a small disruption to DoorDash’s driver supply could be devastating, calculating that a mere 10-11% increase in driver pay would eliminate the company’s entire $1.9 billion in 2024 adjusted EBITDA.
Despite these allegations, investors appeared to largely shrug off the report, with DoorDash shares maintaining positive territory during the trading session.
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