Proposed class action claims Uber Eats is overcharging Canadians

Uber Eats customers in Canada could be part of a new proposed class-action lawsuit accusing the online food delivery service of charging hidden service fees.

On May 16, Toronto law firm Koskie Minsky brought forward a proposed lawsuit against Uber Eats, accusing the company of drip pricing. The lawsuit against Uber Technologies, Inc., Uber Canada Inc., Uber Portier Canada Inc., and Uber Castor Canada Inc. was filed in the Superior Court of Ontario.

In an email statement, an Uber Canada representative said that they cannot comment on the ongoing legal proceedings but that the company takes "these allegations seriously."

"We are committed to transparency and fairness in our pricing practices," they stated. "We are reviewing the claims thoroughly and will be defending the lawsuit."

The allegations

Koskie Minsky alleges that in addition to the advertised delivery fee, Uber Eats charged customers hidden service fees in Canada.

"The class action alleges that Uber misrepresented the true cost of delivery by only fully disclosing the Service Fee at the final stage of the transaction, often obscured under a 'Taxes and Other Fees' line item, a practice known as drip pricing," states the website.

According to Canada's Competition Bureau, drip pricing occurs when the price you see isn't the price you pay, when the true total cost of a product or service isn't displayed upfront, or when there are additional charges that you weren't expecting.

"The only mandatory fees you should pay are the fixed ones imposed by the government on purchasers, such as sales tax," states the site.

The company is also being accused of breach of contract.

The lawsuit alleges that customers who paid a monthly subscription fee for Uber One had to pay a service fee, despite being promised no delivery fees on eligible orders in Canada.

"Uber One Class Members do not, in fact, benefit from no delivery fees as they are still required to pay the service fee, which is an additional delivery fee," reads the court document.

According to the lawsuit, by leading customers to pay more for delivery than represented, Uber's actions are accused of being "false and misleading," thereby violating the Competition Act and the Ontario Consumer Protection Act.
The proposed class action alleges that the company must reimburse customers for the service fees they paid, in addition to damages. It also alleges that Uber One customers are entitled to reimbursement for monthly and annual subscription fees, as well as any additional fees paid.

The total amount to be paid to class members in punitive damages depends on what the court finds appropriate.

Are you eligible?

You may be eligible to participate in the proposed class-action lawsuit if you're a Canadian resident and an Uber Eats customer who paid a service fee after placing an order for delivery on or after May 16, 2023. The lawsuit also includes Canadians who were Uber One subscribers on or after May 16, 2023.

If you're eligible, you don't need to sign up as you're automatically included as a class member unless you choose to opt out.

To learn more about the proposed class action lawsuit, visit Koskie and Minsky's website.

Uber isn't the only company facing legal troubles.

The Competition Bureau is suing DoorDash, alleging that the company has advertised misleading prices and discounts in Canada.