Eat24 Delivery Service Drivers Sue Yelp For $5M In Unpaid Tips

Back in February, Yelp bought out Eat24 for $134 million to compete with Seamless and Grubhub. Now, two Eat24 drivers in San Francisco are suing the company for at least $5 million in unpaid tips.

Steven Kay from Oakland and Esteban Polonski from south San Francisco filed the lawsuit on July 10, saying that Eat24 encouraged customers to tip for their delivery service, but failed to award that money to the drivers — let alone notify them that they were tipped.

Kay and Polonski work for a car-hire service called Sidecar, which delivers to Eat24 customers. Fortune reached out to Yelp for comment, and the company responded, saying: "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. We believe this lawsuit has no merit."

In the lawsuit, the drivers note that Eat24 wrote to a customer on Twitter to say that they pay their delivery people and claim in the lawsuit that "Eat24 [also] conceals the fact that a customer has tipped a driver through its website, as the tip total is not included on the delivery invoices that drivers may see when picking up food to deliver."

We have reached out to Yelp for comment and have not heard back yet.