Uber Eats in Canada is facing a lawsuit saying it charges customers hidden fees whenever they order. This is questionable since Uber Eats is not only the number one food delivery platform internationally, but it also has a broad consumer reach.
Lawsuit vs. Uber Eats in Canada
In a recent report by ridesharing media, Ontario’s justice authorities had accused the platform of hiding additional service fees within its overall delivery costs the previous month.
Uber Eats spoke with the media to share their side. While they are taking the allegations very seriously, they also stated, “We are committed to transparency and fairness in our pricing practices. We are reviewing the claims thoroughly and will be defending the lawsuit.”
The food delivery platform in the North American destination has admitted to charging additional fees, but it classifies this as fluctuating based on customers’ orders.
“[That’s] typically 10 percent of the basket, calculated on the total before any promotions or discounts are applied,” the Canadian division of Uber Eats stated.
So, the lawsuit has a basis after all, following what the media have reported.
From the business perspective, Uber Eats Canada charges a service fee at a minimum of $2 for all food deliveries under $20 and a maximum of $4 for those over $40. This service fee is estimated to be around 10 percent of the items’ order value for everything in between those price points.
The lawsuit states that customers were not aware of and did not agree to these extra fees, so they contacted the authorities and legal specialists to take action.
Evaluating further on these fees, the business community stated this is just about drip pricing, a practice wherein the company tops up mandatory fees after advertising and promoting low prices, but just to invite customers to pay or invest in their products. Drip pricing also does not include additional fixed charges, such as the harmonized sales tax, for instance.
It appears that Uber One members are also impacted by this legal battle. Members of this exclusive Uber Eats feature pay a fee every month, but the complainant in the lawsuit says that they spent more than they were supposed to.
A lawsuit that finds every “fault” that Uber Eats “commits”? This may probably be just because these food delivery platforms are soaring high beyond expectations.
Other Uber Eats news
Meanwhile, in other Uber Eats news, DICK’S Sporting Goods, a shop for everything related to sports finds, has collaborated with Uber Eats, so the delivery platform can also offer consumers a wide selection of sporting goods, athletic apparel, footwear, team sports gear, golf equipment, fan merchandise, and more.
People working for the sports store are, of course, ecstatic about this partnership.
“We believe that speed and convenience is key to our omnichannel experience, and we’re excited to launch our partnership with Uber Eats as an extension of that philosophy,” stated Scott Casciato, in-charge of the omnni-channel fulfillment and strategies at DICK’S Sporting Goods. “When those moments arise where new gear is needed, this partnership with Uber Eats extends our capabilities to give our athletes convenient shopping to get the products they need fast and in a way that is convenient for them.”