SAN FRANCISCO (Legal Newsline) - A popular review website is facing allegations that its food ordering website doesn't pass along tips to delivery drivers.
Steven Kay and Esteban Polonski filed the lawsuit in July 10 in U.S. District Court in California against Yelp Inc. and Eat24 LLC.
Yelp's food ordering website Eat24 covers about 20,000 restaurants around the country, and its online payment system allows customers to pay with a credit card, Paypal or Google Wallet, and leave a tip for delivery drivers with either cash or by adding it to the total amount.
“But when a customer chooses to pay a tip through Eat24’s online payment system rather than in person, the delivery person fails to receive any tip,” the lawsuit said. “Defendants collect but do not distribute tips to drivers.”
The lawsuit also claims that Yelp conceals that it has collected the tip from the delivery through its online payment system.
The plaintiffs are seeking class action status for those who left a tip on the payment system. They are also seeking more than $5 million in damages plus court costs.
The plaintiffs are represented by Andre M. Mura and Steve Lopez of the Gibbs Law Group LLLP in Oakland, Calif.
U.S. District Court for the Northern District of California case number 3:15-cv-03228.