Santa Monica will join several cities across the country in limiting the fees that food delivery apps can charge restaurants. Restaurants have been serving takeout and delivery exclusively for the last two months with the help of third-party delivery apps, which charge a sizable commission on each order. Many restaurants that grudgingly accepted a 20% […]
Tag Archives: Commission Rates
Go read this BuzzFeed News story about GrubHub’s controversial phone ordering fees
GrubHub has come under intense scrutiny of late for what critics and some restaurant owners say are exploitative fees made only worse during the coronavirus pandemic. Now, a revealing BuzzFeed News story has shed light on another controversial yet longtime practice around phone ordering. The company, which also owns the Seamless and Eat24 services and is the largest food […]
Grubhub is still charging some restaurants phone fees, even if you call directly
So you’re avoiding food delivery apps and supporting your struggling local restaurants by ordering from them directly. Good on you! Unfortunately, your phone order may still be putting money in Grubhub’s pocket. According to Buzzfeed News, customers might be unknowingly dialing phone numbers generated and advertised by Grubhub, which charge restaurants hefty fees. “If a customer […]
Uber Eats slaps surcharge on customers of Jersey City eateries in response to 10% commission cap
People who use the Uber Eats app to order delivery from their favorite restaurants in Jersey City will have to start ponying up some extra cash. The popular food delivery service announced Friday that it will charge Jersey City restaurant customers an extra $3 in response to Mayor Steve Fulop’s executive order capping how much food delivery […]
Grubhub, Uber Eats will soon have to disclose fees charged to restaurants
Beginning May 22, third-party delivery services such as Grubhub and Uber Eats will be required to disclose the fees charged to restaurants for their services. Promoting “transparency” as imperative amid the limitations of social distancing mandates, Chicago Mayor Lori Lightfoot claimed elevated fees further handicap restaurants already struggling to stay afloat. According to Lightfoot, customers […]
Why Uber Eats has dropped its commission fee cap to 30%
OPINION: In New Zealand, the economy has been devastated by the necessary restrictions put in place to counter the virus, with the restaurant industry one of the hardest-hit sectors. It’s been almost seven weeks since restaurants across the country were told to shut their doors. Their revenue ceased. With restaurants now back open for take away […]
4 third-party food delivery services come out against Jersey City directive limiting fees
DoorDash, Grubhub, Postmates, and Uber Eats have come out against a Jersey City order that would not allow third-party food delivery services to earn more than 10 percent in fees, calling the measure “misguided and potentially disastrous.” “The extreme executive order issued today in Jersey City to limit the amount that restaurants pay to offer […]
Grubhub Collected Record Fees From Restaurants Struggling To Stay Alive During The Pandemic
As empty restaurants around the country struggle against an uncertain future and perhaps unrealistic guidelines for reopening during the coronavirus pandemic, takeout-ordering company Grubhub reported record revenues of $363 million from January through March, up 12% from the same quarter a year ago. Restaurant owners have long complained that fees charged by ordering platforms like Grubhub, often ranging from […]
The Grubhub conundrum: Restaurants wrestle with the high costs of third-party delivery services
Pierogi Mountain cited the cost of doing business with third-party delivery services in its recent decision to temporarily close up shop, and other restaurants have expressed similar frustrations with the financial model as delivery orders continue to dominate amid COVID-19 shutdownsIn late April, Pierogi Mountain announced it would temporarily close, citing the frequency of shopping […]
Houston Restaurants Weigh Benefits and Pitfalls of Third-Party Delivery Services
A mere decade ago in Houston, restaurant delivery was limited to pizza joints and a handful of other restaurants. Third-party delivery services such as DoorDash, Uber Eats, Grubhub and Postmates have changed all that. What started with one online platform in 1995 — World Wide Waiter — is now a $18 billion industry in the United States, according to Restaurant Dive. In many ways, […]