With people being forced into quarantine, the already popular food delivery apps have seen a massive surge in usage. However, GrubHub, DoorDash, Postmates and Uber Eats are being sued for allegedly exploiting imposing massive fees that consumers will ultimately pay for with restaurants having to increase their menu prices during this coronavirus pandemic.
The class action lawsuit was filed Monday in Manhattan federal court. Three consumers from New York said the defendants violated U.S. antitrust law by requiring that restaurants charge delivery customers and dine-in customers the same price, while imposing “exorbitant” fees of 10% to 40% of revenue to process delivery orders.
“Plaintiffs bring this claim for relief on behalf of all Americans who would still [like] to enjoy a nice dinner out with their family before defendants make that impossible,” the complaint said.
Plaintiffs are seeking triple the amount of damages, including for overcharges, since April 14, 2016 for dine-in and delivery customers in the United States at restaurants using the defendants’ delivery apps.
The case is Davitashvili et al v Grubhub Inc et al, U.S. District Court, Southern District of New York, No. 20-03000.