Delivery Service Hidden Charges Class Action Lawsuits: An Overview

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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.