Grubhub Has Been Charging Restaurants For Bogus Orders, Philadelphia Case Reveals

…Grubhub was sued by Munish Narula, who owns Tiffin Indian Cuisine in Philadelphia on charges for “phantom orders for at least seven years.” The lawsuit alleged that the food delivery company’s 115,000 restaurant partners are facing this kind of overcharging.

The lawsuit alleges that behind the thriving commission taking exercise is the modus operandi was the practice of installing own phone numbers on the website and app than revealing the actual phone number of restaurants so that customers can make direct calls for any query.

Customers using the numbers given on the website may not know the difference. This is because Grubhub automatically forwards those calls to the restaurants and takes a commission.

Grubhub owns food delivery service Seamless. The stated position of the company in the competitive market with players like Zomato is that it will only charge only those orders it helped in generating.

But eatery owners allege that the Chicago company is sending them inflated bills for all kinds of calls, including calls for dinner reservations or even on tiny complaints like sauce pack was not available.

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