LAS VEGAS (KLAS) — A class action lawsuit filed against Uber Eats, delivery drivers and “imposter” restaurants includes racketeering allegations that dishonest operations have been going on for years.
Four restaurant companies — Esther’s Kitchen, Babystacks Cafe, Manizza’s Pizza and Gaetano’s Ristorante — are suing to recover damages they say were lost to companies that made and sold food using their business names, all with the ongoing cooperation of Uber Eats and their delivery drivers, according to the lawsuit. Uber Eats pocketed 30% on every transaction and failed to investigate whether the imposter restaurants were who the said they were, the lawsuit alleges.
This week, 8 News Now reported how the owner of Manizza’s Pizza caught another business in the act impersonating her brand to fill an order.
Uber Eats says it has paused all new applications for virtual kitchens in the Las Vegas valley and is now requiring new businesses to provide business licenses and proof of a physical address.
The lawsuit estimates that at least 1,000 restaurants in the valley have been victimized, and seeks damages in excess of $15,0000 for each of those companies. Allegations of additional damages are also detailed in the lawsuit, which was filed Wednesday in Clark County, Nevada District Court.
The plaintiffs argue that Uber Eats deliberately allows virtual kitchens to impersonate restaurants.
“The Uber Defendants set the app up in this manner intentionally to harm small restaurant businesses, including Plaintiffs, in an effort to take up more of the local restaurant market share as these local restaurants were pushed out due to the impact of this fraud and conversion,” the lawsuit alleges.
The setup “resulted in parties creating false identities that co-opted known restaurants brands and identities … and allowed unknown individuals to siphon business for themselves using the goodwill created by the actual business owners,” according to the lawsuit.
The drivers are complicit because they knew the food was not coming from the actual restaurant listed in the app, the lawsuit argues.
The lawsuit names Uber Technologies, Inc., Rasier, LLC, Uber Eats territory lead Berchman Melancon, two Uber Eats drivers identified only as Nick and Karina, and additional people and companies yet to be identified.
Allegations include fraud, conversion, defamation and negligence, arguing that the actions qualify as racketeering under Nevada’s RICO statutes. Racketeering laws are often used to combat organized crime activities.
