Canada's two major food delivery platforms, Uber Eats and DoorDash, are being sued for "drip pricing."

Both major food delivery platforms in Canada, Uber Eats and DoorDash, are facing lawsuits!

On May 16, the Toronto law firm Koskie Minsky filed a proposed class action lawsuit against Uber Eats, accusing the company of employing a "drip pricing" strategy. This lawsuit, targeting Uber Technologies, Inc., Uber Canada Inc., Uber Portier Canada Inc., and Uber Castor Canada Inc., has been submitted to the Ontario Superior Court.

The lawsuit claims that in addition to the stated delivery fees, Uber Eats charges hidden service fees to its customers in Canada.

According to the firm's website, "This class action alleges that Uber misrepresented actual delivery costs and fully disclosed the service fee only at the final stage of the transaction, often hidden under the item 'taxes and other fees.' This practice is known as 'drip pricing.'"

In addition, the company is also accused of violating contract terms.

A representative from Uber Canada said that due to ongoing legal proceedings, they cannot comment on this matter but take these allegations seriously.

"We are committed to transparent and fair pricing," the statement read. "We are carefully reviewing the allegations and will defend ourselves."

In addition, another food delivery platform, DoorDash, has already been sued by the Competition Bureau of Canada for hidden service fees.

The investigation found that when users place orders through DoorDash, additional "mandatory fees" appear on the checkout page, causing the actual payment amount to exceed the price initially displayed on the advertisement page.

In some cases, the Competition Bureau pointed out that these extra charges were even incorrectly labeled as "taxes" by DoorDash, further misleading users.

The Competition Bureau also revealed that DoorDash has collected nearly $1 billion through this drip-style mandatory fee over nearly a decade.

DoorDash firmly denied the charges in its statement, stating that it did not hide any fees or mislead consumers.

"We believe this is an overly punitive move aimed at taking aim at industry leaders," DoorDash said.

If Uber Eats and DoorDash lose the case, a large number of users may receive compensation.

Source: https://www.toutiao.com/article/1834669179833356/

Disclaimer: The article solely represents the author's personal views.