GrubHub, DoorDash, Postmates & Uber Eats Sued Over Excessive Fees

Delivery apps are vital right now for everyone who is self isolating. But GrubHub, DoorDash, Postmates and Uber Eats were sued on Monday for exploiting their dominance in restaurant meal deliveries. The lawsuit alleges that these companies impose fees that consumers ultimately bear through higher menu prices, including during the coronavirus pandemic.

In the lawsuit seeking class-action status that was filed in Manhattan federal court, several customers allege that GrubHub, DoorDash, Uber Eats and Postmates have “monopoly power” that they use against restaurants and consumers. Their fees range from 10% to 40% of purchases, the lawsuit says, and they prevent competition and limit consumer choice.

The lawsuit is not tied to the current coronavirus pandemic. It also accuses the food delivery companies of forcing restaurants to charge higher prices even for prices for dine-in customers. The lawsuit alleges that this made it harder to keep tables full even before the pandemic.

The lawsuit seeks triple damages, including for overcharges, since April 14, 2016 for dine-in and delivery customers in the United States at restaurants that use these delivery apps.

Lawsuit Details

The case is Davitashvili et al v Grubhub Inc et al, U.S. District Court, Southern District of New York, No. 20-03000.