Were You Charged for a ‘Free’ Food Delivery Fee?

Food delivery services like DoorDash and Uber Eats have become increasingly popular in recent years, their widespread use skyrocketing with the onset of the COVID-19 pandemic as people were looking for ways to stay home and support local businesses. But the use of these services has also highlighted another issue: the food delivery fee dramatically increases what the customer pays and takes a huge cut from restaurants.

To encourage customers to use their services, many food delivery companies have promised deals like low-cost delivery or even a free delivery fee, but consumers may be faced with secret or hidden charges nonetheless.

Food delivery fees are notoriously high, making your food purchases up to 91% more expensive, according to an investigation by The New York Times.

The food delivery fee charged on top of the cost of the actual food itself can comprise a number of different things, including tax, service costs, and the delivery fee, sometimes all on the same line. Some restaurants also increase the prices of food ordered through these delivery apps. A tip for the driver, however, is not included and would be an additional expense.

These fees can be dramatic, and impact consumers and restaurants alike.

For years, consumers have complained about the food delivery fee problem. Some say that they were hit with unexpected and undisclosed markups on their food deliveries. A class action lawsuit was filed in 2016 against DoorDash, alleging the company charged markups of at least a few dollars without customers’ knowledge.

GrubHub has been hit with a similar class action lawsuit over its fees, allegedly charging higher delivery fees than those it lists on the app.

Even when these third-party delivery service apps offer a free or low-cost food delivery fee, the customer may not be left paying for just the food, as they might expect. Instead, they may face additional costs like tax, convenience fees, service costs, and inflated food prices, as well as an optional tip for the driver.

Toll on Restaurants

Third-party food delivery services are also taking a toll on restaurants. In April 2020, pizza restaurant owner Giuseppe Badalamenti wrote a viral Facebook post showing that out of the $1,042.63 worth of orders his restaurant’s customers placed through GrubHub the previous month, the fees pocketed by the company left the restaurant making only $376.54 through the service.

Some states and cities across the country have chosen to cap the food delivery fee charged by third-party services in order to help keep local businesses afloat during the pandemic, including big cities like New York City, Minneapolis, Chicago, and are now moving to smaller areas like the county of Schenectady in New York, which have introduced a food delivery fee cap of 15%. The states of Washington and Oregon have also introduced 15% caps, and a similar bill in Massachusetts is currently pending Gov. Baker’s signature.

If you were charged a hidden food delivery fee by a third-party app like GrubHub, Postmates, DoorDash, Caviar, or Uber Eats, you may be able to join a class action lawsuit investigation and pursue compensation. This investigation is looking for California consumers in particular who may have been charged hidden fees by these companies.

Pursuing litigation can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.