Uber class action says food delivery fee tax is illegal

Uber delivery fees class action lawsuit overview: 

• Who: Plaintiff Stephanie Martin is suing Uber.
• Why: Martin claims the company is illegally charging sales tax on delivery fees.
• Where: The Uber delivery fees class action lawsuit was filed in a Florida federal court.

Uber has been hit with a class action lawsuit claiming it unlawfully charged sales tax on delivery fees for food orders in Florida.

Plaintiff Stephanie Martin filed the class action complaint against Uber Technologies Inc. on June 17 in a Florida federal court.

“Upon information and belief, Defendant has unlawfully charged thousands of dollars, if not more, in taxes on optional delivery charges to consumers throughout the state of Florida,” she says.

Sales tax charged on delivery fees

Martin claims that under Florida law, sales tax can only be added to the total sales price of tangible goods, which includes services directly related to the sale. 

However, when customers have the option to either pick up their orders or have them delivered, sellers are prohibited from charging sales tax on separate delivery fees. 

Martin claims that Uber has violated this law by imposing sales tax on delivery fees despite customers having the option to pick up their orders.

According to the complaint, Uber operates an online marketplace that allows consumers to order food items for either delivery or pickup. For deliveries, Uber charges a separate delivery fee, which is clearly stated on billing documents or receipts. Customers who choose to pick up their orders are not charged this fee. Despite this, Uber has been collecting sales tax on these delivery fees, which Martin argues is illegal under Florida law.

Uber illegally collected thousands of dollars, lawsuit alleges

Martin’s complaint includes specific instances from May 30 and June 5, 2024, when she placed food orders with Uber and chose delivery. In both cases, she was charged delivery fees of $3.99 and $2.49, respectively, along with sales tax on these fees. 

“Defendant has collected from its customers, and will continue to collect, thousands of dollars in sales taxes on separately stated and avoidable delivery fees,” Martin says.

The lawsuit seeks to represent anyone in Florida who was charged and paid sales tax on a delivery fee by Uber when they had the option to pick up their order, in the past four years. 

Martin is seeking certification of the class action, damages, fees, costs, and a jury trial.

In 2021, Uber Eats was hit with a class action lawsuit alleging it illegally overcharges its New York food delivery customers on sales tax when using promotions, raking in more than $5 million in additional benefits for itself at the customer’s expense.

What do you think of this Uber delivery fees class action lawsuit? Let us know in the comments.

The plaintiff is represented by Michael Eisenband of Eisenband Law PA. 

The Uber delivery fees class action lawsuit is Stephanie Martin v. Uber Technologies Inc., Case No. 0:24-cv-61340, in the U.S. District Court for the Southern District of Florida.

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