Uber class action alleges Uber Eats charges hidden service fee

Uber Eats class action lawsuit overview:

• Who: A Canadian Uber Eats user filed a class action lawsuit against Uber.
• Why: The plaintiff claims Uber Eats charges a hidden service fee on delivery orders that is not disclosed until the end of the transaction.
• Where: The Uber Eats class action lawsuit was filed in Ontario Superior Court of Justice.

An Uber Eats user has filed a class action lawsuit against Uber, alleging the company charges a hidden service fee on delivery orders that is not disclosed until the end of the transaction.

Plaintiff Abigail Courtenay claims Uber Eats users are charged a service fee in addition to the delivery fee but says the service fee is not disclosed until the checkout stage of the transaction.

According to the class action lawsuit, the service fee is hidden in a line item identified as “Taxes & Other Fees,” and users must click on the description to see the amount and description of the service fee.

Courtenay alleges the service fee is an “undisclosed delivery charge” that misrepresents the true cost of Uber Eats’ delivery services. She claims Uber’s practice of revealing and charging the service fee only at the final stage of the transaction is a quintessential example of “drip pricing” practices. 

According to the Federal Trade Commission, drip pricing is a pricing technique in which firms advertise only part of a product’s price and only reveal other charges later, as the customer goes through the buying process.

Uber Eats service fee breaches contract with Uber One members, class action says

Courtenay claims Uber’s addition of the service fee breaches the company’s contracts with Uber One subscribers, who pay a monthly fee for benefits, such as free delivery.

She says the service fee constitutes false, misleading and/or deceptive representations that violate the Competition Act and the Ontario Consumer Protection Act and Equivalent Consumer Protection Legislation. Courtenay also claims the service fee grounds claims for negligent misrepresentation and unjust enrichment.

Courtenay wants to represent anyone in Canada who placed a delivery order using Uber Eats and paid a service fee since May 16, 2023. She is seeking court certification of the class action lawsuit, damages, fees, costs and a jury trial.

In 2021, food delivery companies Uber Eats, DoorDash and SkipTheDishes in Quebec were hit with a class action lawsuit accusing them of charging customers “abusive” and exorbitant fees during the COVID-19 pandemic. 

What do you think about the allegations in this Uber Eats class action lawsuit? Tell us your thoughts in the comments.

Courtenay is represented by David Rosenfeld, Adam Tanel and Sue Tan of Koskie Minsky LLP.

The Uber Eats class action lawsuit is Courtenay v. Uber Technologies Inc., et al., Court File No. CV-25-00743364-00CP, in the Ontario Superior Court of Justice.

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