Food Delivery Service Waitr Sued Over Allegedly Illegal Transaction Fee Increase

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Waitr Holdings, Inc. has been hit with an Arkansas eatery’s proposed class action after allegedly raising the contractual service fee it charges restaurants on its online food delivery platform.

According to the lawsuit, Waitr operates a food delivery service that allows “more than a million users” across the country to order food from local restaurants. In order to join Waitr’s network, restaurants are required to enter into a contract with the company that stipulates Waitr can collect a non-variable 10 percent “Service Transaction Fee” on each food order, the case explains.

In 2018, however, Waitr allegedly raised its service fee from 10 to 15 percent across the board in violation of its contracts with restaurants. “It did so intentionally;” the complaint asserts, “blatantly ignoring the contractual mandate that no changes to the contract could be made except in writing with signatures of all parties.”

The lawsuit points out that the apparently unlawful price increase was imposed just after Waitr announced that it was acquired by an investment fund but before its initial public offering, “suggest[ing] an intent to maximize potential revenue with disregard for its contractual obligations to its customers.”

The case looks to cover a proposed class of persons or entities who entered into a written contract with Waitr Holdings, Inc. or Waitr, Inc. between May 1, 2009 and the date the class is certified and experienced a service transaction fee increase.