Grubhub Broke ‘Unlimited Free Delivery’ Promise, Alleges Class Action Lawsuit

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Grubhub allegedly duped Californians into a “free delivery” monthly subscription, slapping them with an unexpected $2.50 fee for each order starting in December, claims a class action lawsuit.  

Lead plaintiff, California resident Jesse Stout, wants to represent other Grubhub+ members in the class action lawsuit which was transferred to California federal court Tuesday. The plaintiff says that he and other consumers were promised “unlimited free delivery” on orders over $12 from Grubhub in exchange for a $9.99 monthly fee, but the company began hitting consumers with a “CA Driver Benefits Fee” in December 2020.  

Stout says that Grubhub blames California’s Proposition 22 for the added fee. Proposition 22 was a ballot initiative that passed in the November 2020 election. Grubhub lobbied extensively for the proposition, which would exempt it from a California law, AB 5, that would have required the company to treat its drivers as employees, rather than independent contractors, notes the class action lawsuit.  

“Had AB5 remained the law, all Grubhub drivers would have been guaranteed a variety of extensive benefits under state law, including overtime, sick time, health care, bargaining rights, and unemployment insurance, among others,” explains Stout.  

Proposition 22 passed, but Grubhub does not want to pay the associated fees that come from the new law, claims the class action lawsuit. Instead, the company is allegedly trying to pass these costs onto consumers in the form of the added CA Driver Benefits Fee. 

“Plaintiff and other Grubhub+ subscribers were lured into signing up for a Grubhub+ subscription based on the promise of Unlimited Free Delivery,” contends Stout. “Grubhub failed to honor that promise, however, by adding a CA Driver Benefits Fee to every Grubhub order.” 

The class action lawsuit accuses Grubhub of advertising what amounts to a “bait & switch.”  

“Grubhub+ users signed up for, and Grubhub promised to provide, Unlimited Free Delivery for $9.99/month,” claims Stout. “The promise of ‘unlimited free delivery’ is material to all Grubhub+ subscribers because that is the entire point of the subscription.” 

Stout wants to represent other Californians who signed up for Grubhub’s free delivery service and ended up paying the CA Driver Benefits Fee. The class action lawsuit accuses Grubhub of violating California consumer protection laws and is seeking damages as well as a court order stopping Grubhub from assessing extra fees on free delivery subscribers.  

Did you sign up for Grubhub Free Delivery? We want to hear from you! Tell us about your experience in the comment section below.  

The plaintiff is represented by Jeffrey D. Kaliel and Sophia G. Gold of Kaliel Gold, PLLC.  

The Grubhub Free Delivery Class Action Lawsuit is Stout v. Grubhub Inc., Case No. 3:21-cv-04745-TSH in U.S. District Court for the Northern District of California.  

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