DoorDash Driver Pleads Guilty to Fraud
Analysis based on 8 articles · First reported May 14, 2025 · Last updated May 15, 2025
The event has a minor negative impact on DoorDash's market sentiment due to the financial loss and exposure of system vulnerabilities, though the amount is not significant enough to cause a major stock price fluctuation. It also highlights the ongoing challenges for gig economy companies in preventing fraud.
Sayee Chaitanya Reddy Devagiri, a former DoorDash delivery driver, pleaded guilty to conspiracy to commit wire fraud. He admitted to orchestrating a scheme with three co-conspirators, including Manaswi Mandadapu and Tyler Thomas Bottenhorn, to defraud DoorDash of over $2.5 million between 2020 and 2021. The scheme involved using customer accounts to place high-value orders, then using an employee's credentials to access DoorDash software to reassign orders to fraudulent driver accounts. These accounts would falsely report deliveries and manipulate DoorDash's computer systems to pay for non-existent orders. Devagiri faces up to 20 years in prison and a $250,000 fine, with sentencing scheduled for September 16, 2025. This marks the third conviction in this conspiracy, as his co-defendants also pleaded guilty.
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