Uber Eats Canada is facing a proposed class action lawsuit, accusing it of engaging in what is known as “drip pricing,” a strategy that allegedly hides additional costs from customers until the later stages of the ordering process.

According to documents filed in the Ontario Superior Court, the lawsuit — which has not yet been officially certified as a class action — claims that the company presented misleading initial prices to consumers, only to gradually add service, delivery, and “regulatory” fees during the completion of the order, making the final price much higher than what was apparent at the beginning.

Allegations of Lack of Transparency

The lawsuit states that “Uber Eats misleads consumers by not fully disclosing the total cost of the order until the final stage, which constitutes a violation of consumer protection laws,” adding that this practice deprives customers of the opportunity to compare prices fairly and transparently.

What is “drip pricing”?

The term “drip pricing” refers to a marketing strategy where low initial prices are offered to attract customers, only to later add a number of fees and undisclosed costs after the consumer progresses in the purchasing process — a practice that has previously drawn criticism in the travel and online booking sectors.

Response from “Uber Eats”

Uber Canada has not yet issued an official comment, but the company has faced similar issues regarding pricing transparency in other countries, particularly in the United States and Australia.

If the lawsuit is accepted as a class action, it could open the door for thousands of users in Canada to seek financial compensation, and could potentially lead to regulatory changes in how delivery service prices are presented through apps.