Uber, Grubhub, and DoorDash Under Scrutiny as the Industry Consolidates

Uber Technologies (NYSE:UBER) is buying Postmates and the ride-hailing businesses of BMW and Daimler, while Just Eat Takeaway.com is buying Grubhub (NYSE:GRUB). DoorDash previously acquired Caviar. Lining up against delivery California just banned the practice of adding restaurants to third-party delivery apps that the services don’t have a relationship with. Restaurants that didn’t offer their own delivery service as a means of controlling the […]

Grubhub Hit With Lawsuit for Listing Restaurants Without Permission

Two restaurants have initiated a potential class-action lawsuit against GrubHub for allegedly listing 150,000 restaurants to its site without the businesses’ permission. The Farmer’s Wife in Sebastopol, California and Antonia’s Restaurant in Hillsborough, NC filed the suit with Gibbs Law Group, accusing Grubhub of adding their restaurants to its site despite not entering into a partnership, which causes “significant damage to […]

Grubhub Sued for Sneakily Adding 150,000 Restaurants to Platform

Grubhub Inc. was accused in a lawsuit of responding to growing competition in the food-delivery business by adding 150,000 restaurants to its platform without their permission. To disguise the subterfuge, Grubhub instructs delivery drivers to place orders with the restaurants themselves and pretend to be the intended customers when they pick up the food, according to […]

Restaurants File Class Action Lawsuit Against Grubhub for Adding Them to Its Platform Without Permission

OAKLAND, Calif.–(BUSINESS WIRE)–Two well-known restaurants have filed a class action lawsuit on behalf of affected restaurants throughout the country alleging that Grubhub intentionally included them on its delivery and takeout website and mobile app platform without permission. The lawsuit states that by including restaurants, including their names and logos, on its website without authorization, Grubhub […]

LOCAL GOVERNMENTS TURN UP THE HEAT ON DELIVERY COMPANIES

More governments this week joined the growing chorus of calls for more regulation—and awareness—of the business practices of third-party delivery companies. Activity included limits on delivery fees, a countywide consumer alert and a move in Nevada to refer Grubhub to the state attorney general’s office. Read on to get caught up. Attorney general tapped Officials in Clark […]

Chicago May Reconsider Capping Third-Party Food Delivery Fees

After taking a summer vacation from discussions, Chicago’s City Council is once again grumbling about third-party delivery companies with one alderman urging his colleagues to pursue capping what DoorDash, Grubhub, Uber Eats, and Postmates charge restaurants. This comes as the city on Wednesday announced a $500,000 grant program for ailing restaurants funded by DoorDash. While praising […]

Denver restaurateurs share why third-party delivery regulation was necessary

The problems started for Giles Flanagin, cofounder of Blue Pan Pizza, when Postmates marked up his menu prices 10% this year without asking his permission. Then came issues with third-party delivery drivers. One came into his Denver restaurant demanding to go to the front of the line, and another refused to wear a mask when she […]

ShiftPixy Partners with Big Association, Readies Native Delivery Push

ShiftPixy has been working toward a hybrid native-gig delivery model for some time now, but a big new partnership gets the staffing platform one step closer. The company’s overall aim is to bring efficiency to the part-time labor market by taking over the overhead of insurance. As CEO Scott Absher explains, that’s especially helpful when […]

Labor department considers new independent contractor definition, could be used to federally challenge AB 5

The U.S. Department of Labor (DOL) is revising its interpretation of independent contractor status under the Fair Labor Standards Act (FLSA), which could open the door for federal challenges to Assembly Bill (AB) 5. “Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make […]

Restaurants get a break on profit-eating delivery fees from third-party apps

A law passed Monday by the Denver City Council caps fees taken by third-party food-delivery apps at 15 percent of the customer’s tab. City Councilwoman Kendra Black sponsored the bill in response to the pandemic-caused recession that has leveled local restaurants. A quarter of all jobs lost in Denver during the COVID-19 era have come […]