Grubhub scrambled to fend off allegations that it has been charging bogus fees to restaurants and setting up fake websites to take orders, even as it reported a 96 percent profit plunge.
Shares of the Chicago-based food-ordering company — which also owns Seamless — were off more than 12 percent at $70 in late-morning trades Tuesday.
…As exclusively reported by The Post in May, Grubhub in many instances has been regularly charging restaurants for phone calls that didn’t result in a food order.
Some eateries have likewise been surprised to learn that Grubhub has built websites to take orders for them and grab fees without their knowledge.
…Grubhub said Tuesday its net income from March to June plummeted to $1.3 million from $30.1 million a year earlier, blaming surging operating expenses and marketing costs.
Grubhub’s profits were eaten up by a 60 percent increase in sales and marketing costs, to $74.1 million. Operations and support also rose 59 percent, to $106.4 million, as the company has nearly doubled its tech staff.