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In recent years, companies such as DoorDash and Grubhub—as well as restaurant chains like Chipotle, Panera Bread, Sweetgreens, Panda Express, and others—have changed the food industry by delivering food directly to consumers’ homes.
These services have become widely used—especially during the coronavirus pandemic when restaurants have closed for in-house dining and many Americans have become less willing to leave their homes.
Unfortunately, some delivery services may have come with hidden fees.
Lawsuits have been filed against companies such as DoorDash, Grubhub, and Pizza Hut in courts in California, Illinois, and Florida.
According to these cases, consumers have been charged deceptively hidden fees after ordering food delivery—even, in some cases, when the delivery was promised to be “free.” In some cases, companies allegedly charged delivery fees that were higher than those advertised online. This may also be the case for subscription programs that promise free delivery.
What Do Delivery Fees Cover?
Most consumers are content to pay delivery fees when they order food to be delivered to their home. These fees pay for the convenience of having food directly brought to their doors instead of forcing consumers to drive to pick up a takeout order themselves.
In addition to paying for the service of delivery, these fees may compensate the delivery drivers. For food delivery apps like DoorDash and Grubhub, delivery fees are intended to compensate drivers for their services.
Unfortunately, some of these fees may include hidden or undisclosed additional charges, according to a developing lawsuit investigation.
Do Delivery Companies Charge Hidden Fees?
Food delivery apps significantly increase the cost of ordering food, according to an investigation by The New York Times. Upon analyzing delivery from DoorDash, Postmates, Grubhub, and Uber Eats, the news source revealed that the price of two Turkey Breast subs from Subway may be increased by up to 91% through fees and taxes.
Restaurants may also face the brunt of these price increases. In 2020, a Chicago pizzeria owner told Today that he pocketed only $376.54 of the $1,042.63 worth of orders he received through Grubhub during March. Between commissions, delivery commissions, processing fees, and promotions, the owner notes that the majority of the money charged was not directed towards the local business but was instead pocketed by a big corporation.
“Stop believing you are supporting your community by ordering from a 3rd party delivery company,” the pizzeria owner wrote in a Facebook post.
A New York restaurant shared a similar story with NPR, lamenting the significant commissions charged for every food delivery purchase through third-party apps.
Unfortunately, consumers may also be keenly affected by unfair price increases. Analysts from Gordon Hashkett looked at 25 different fast food restaurant chains and compared their prices for delivery vs. pick up. On average, a consumer reportedly pays 15.3% more to have their food items delivered. The largest difference was seen at Chick-fil-A, the analysts reveal, where delivery cost 29.8% more.
Have Food Delivery Fee Lawsuits Been Filed?
Some consumers refuse to take these extra fees laying down. Several lawsuits have been filed against food delivery companies and restaurants in order to seek refunds for what they view as deceptive or hidden fees.
In April 2016, DoorDash was hit with a class action lawsuit in the Northern District of California. According to the plaintiff in this case, the food delivery app charged additional DoorDash delivery fees on the food it delivers in addition to the disclosed delivery fees and driver tips. For example, the plaintiff allegedly paid a higher price for Thai food she ordered through the company than what she would have paid if she ordered directly from the restaurant.
In June 2017, Grubhub, another food delivery app, was hit with a class action lawsuit challenging the company’s delivery fees. According to this Illinois plaintiff, Grubhub routinely charged higher delivery fees than those presented in the app.
“Grubhub systematically deceives its customers by increasing the delivery fee and charging customers extra monies for the deliveries for restaurant orders placed through their mobile app,” the Grubhub class action lawsuit contended.
“These heightened charges that are imposed on consumers stand in stark contrast to the delivery prices GrubHub affirmatively lists when it displays the list of available restaurants to consumers.”
Delivery apps are not the only companies that have been targeted in legal action. In 2015, Pizza Hut was hit with a class action lawsuit in Florida over their delivery fees. The plaintiff in that case argued that Pizza Hut unlawfully charged sales tax on delivery fees despite state regulations.
Numerous other consumers may have a legal claim against restaurants and food delivery acts. State laws in states such as California prohibit deceptive behavior—including hidden fees.
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14 thoughts onDelivery Service Hidden Charges Class Action Lawsuits: An Overview
UberEATS drivers constantly deliver wrong or incomplete orders to customers and then UberEATS claims the customers have made “too many refund requests” and refuses to do anything about it. I have been delivered orders belonging to other customers, even an order from a different restaurant! If a restaurant puts a large order in two bags the driver delivers only one bag so you end up getting only half your food. Then UberEATS sends you a copy and paste message with every complaint you make full of false politeness asking for your understanding because you’ve made too many refund requests and they can’t do anything for you. The drivers know they can steal your food with little or no consequences – and then the drivers have the nerve to complain when you take away the tip because they didn’t do their job right! THIS is what there should be a class action suit for!
Doordash, GrubHub, Uber Eats need to be regulated by the government to put a hourly wage for their drivers to make while driving, at less when driving for four hours.
Add me to Doordash suit. I drive for Doordash and I really believe DD are, and have been stealing their drivers tips. We don’t get the promised base pay and peak pay I notice when the customer gives a tip of over $5. I noticed my account in cash says one thing add the end of my trip delivery and the next day my funds, or pay is much lower. DD is full of s*hit when it comes to honestly to their drivers also. They maps most of the time indicates that the delivery is closer, but once the food is picked up and your delivery starts, the distance is much further and the pay is lower for the amount of miles you have driven. I’ve challenge them several times by written them messages in the app comment box. Of course, with no response back
Please add me.
I also would like to be apart of door dash lawsuite
Add me.
Very true wish I would have known
Add me please I use almost everyday
Add me
Add me to this lawsuit. There were times it was advertised no delivery fee or the delivery fee was $.99 but I was charged a much higher price