One benefit of online delivery services is the removal of that awkward moment when you ask everyone hanging out in your apartment if they have extra cash for a tip. The gratuity is taken care of before the food even arrives. But when you hand a pizza delivery guy five dollars you know it’s going in his pocket. That’s not necessarily the case with online ordering.
That’s the issue in a new class action lawsuit from drivers who work for Yelp’s Eat24 delivery service. They claim the tips don’t find their way to drivers – at all. The suit, filed in San Francisco federal court on Friday, is seeking up to $5 million in damages from Eat24 for drivers who work the service across the country.
For their part, Yelp claims the problem stems from Sidecar – a company Eat24 contracts with to supply drivers for the service. “This case appears to be brought by drivers who contract with Sidecar to deliver food for orders made through Eat24. To be clear, neither Yelp nor Eat24 hire or contract with any delivery drivers. For Sidecar-made deliveries, Eat24 sends all tips to Sidecar, who we understand then distributes those tips to Sidecar drivers,” Yelp said in a statement. “We believe this lawsuit has no merit.”