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FinanceUber Eats sued over misleading priority delivery fees in proposed class action
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A proposed class-action lawsuit has been filed against Uber Eats, alleging that its priority delivery option, which costs customers $1 to $5 extra and is advertised as 'direct to you,' is misleading. The lawsuit claims that couriers have no way to identify priority orders and that the Uber platform may instruct them to pick up other orders after a priority pickup, or work for competing apps simultaneously, undermining the promised direct delivery. Plaintiff Hassan Wright of California paid $1.49 for a priority delivery in November that arrived late due to other stops; Uber admitted the order was not delivered directly but offered no refund. The suit seeks class-action status for all U.S. and California consumers who paid for the service, demands damages, and asks Uber to stop using 'direct to you' language. The case comes amid broader Federal Trade Commission scrutiny of hidden fees in food delivery apps, and follows DoorDash's recent fee transparency changes.
Source report
By: Joe Guszkowski Source: NRN
A proposed class-action lawsuit alleges that Uber Eats' priority delivery option does not function as advertised, claiming that orders marked as "direct to you" may still include additional stops along the delivery route.
The Allegations
On every order, Uber Eats offers customers the option to pay an extra $1 to $5 for priority delivery, which promises faster delivery and is described as "direct to you." According to Uber's help page, priority means deliveries are dropped off first if the courier is batching or picking up multiple orders.
However, the lawsuit argues:
- Uber Eats couriers have no way of knowing whether an order is designated as priority.
- The Uber platform may instruct couriers to pick up other orders after collecting a priority order, making the "direct" delivery promise misleading.
- Uber Eats allows couriers to work for other delivery apps simultaneously, meaning the company cannot guarantee that couriers are not handling deliveries for other apps during a priority delivery.
"The priority fee is thus not a premium for a specialized service," the lawsuit states. "It is a sham surcharge for a guarantee that Uber has no means of keeping and may actively work to undermine."
The lawsuit claims the practice has cost consumers hundreds of millions of dollars in extra fees.
Plaintiff's Case
The lawsuit was filed Monday in the U.S. District Court in California's Northern District by California resident Hassan Wright. According to the filing:
- In November, Wright paid $1.49 for an Uber Eats priority delivery that arrived late because the courier made other stops before delivering his food.
- When Wright complained to Uber, the company acknowledged the order was not delivered directly but did not offer compensation or a refund.
The lawsuit includes more than 20 additional complaints from other customers regarding the same issue.
Legal Grounds
The lawsuit argues that Uber's priority delivery tactics are fraudulent and violate California's unfair competition and false advertising laws.
The petitioner is seeking:
- Approval as a class action on behalf of all U.S. consumers and California consumers who paid for Uber Eats priority delivery advertised as "direct."
- Damages for class members.
- An order requiring Uber to stop using the "direct to you" language to describe priority delivery.
Industry Context
Uber Eats had not responded to a request for comment as of publication time.
The lawsuit comes as the Federal Trade Commission is scrutinizing food delivery apps over misleading and "hidden" fees.
Last week, Uber Eats rival DoorDash changed how it calculates fees for customers and took steps to improve fee transparency, including new in-app explainers about how fees work and a running tally of fees visible as customers build their cart.
Photo: Shutterstock
Source
Yahoo FinanceWestern
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Uber Eats sued over priority delivery fees in proposed class-action lawsuit