Uber Eats, Postmates deploy tiered pricing structures

Dive Brief: Uber Eats and Postmates today announced a new tiered pricing structure, with 15%, 25% and 30% fee plans.  Uber Eats began testing new fee offerings in late 2020 based on feedback from partner restaurants, and the platform’s new pricing was created with input from thousands of U.S. operators, Sarfraz Maredia, vice president of …

Regulators across the US are targeting the food delivery industry

Regulators are coming for the food delivery companies. Recently, New York City and San Francisco placed permanent fee caps over how much third-party delivery services could charge restaurants. The companies were charging as much as 30% per order until various cities cracked down on them during the pandemic and capped how much they could charge. …

Uber Eats, Grubhub, DoorDash sue NYC for limiting fees the apps can charge restaurants

Food ordering and delivery platforms DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have banded together to sue the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services. The Wall Street Journal first reported the news that the companies filed suit …

Chicago accuses Grubhub, DoorDash of deceptive business practices

Chicago filed two consumer protection lawsuits against DoorDash and Grubhub on Friday for “engaging in deceptive and unfair business practices that harm restaurants and mislead consumers,” according to a press release. This is the first comprehensive law enforcement action against meal delivery companies in the U.S., the city said. The lawsuits, which are the result of an investigation …

Owner.com serves up $10.7M so that independent restaurants can get cooking

Independent restaurants don’t typically have the luxury to create their own online food ordering and delivery capabilities or negotiate for lower rates from legacy ordering platforms like the large restaurant chains do. Here’s where Owner.com comes in. The Palo Alto-based company provides a free online ordering, delivery and marketing platform for independent restaurants that puts them on …

Chicago sues DoorDash, Grubhub for allegedly deceiving customers

The City of Chicago filed two sweeping lawsuits against DoorDash and Grubhub for allegedly deceiving customers and using unfair business practices. The suits echo longstanding claims from restaurant owners that the platforms advertise delivery services for their businesses without their consent and conceal lower prices that restaurants offer directly to customers outside of the platforms. The city also claims both platforms …

FEE CAPS TAKE A BITE OUT OF JUST EAT TAKEAWAY’S U.S. PLANS

Just Eat Takeaway (JET) has been very clear about its plans for the U.S. and the newly acquired Grubhub business: Identify markets where the company is strongest and invest, invest, invest. The crown jewel of that strategy is New York City, historically a Grubhub stronghold and an enormous restaurant market. Unfortunately for Amsterdam-based JET, the Big …

What is the future of restaurant delivery?

“This is a disrespectful approach.”   Those are the words of Adir Michaeli, the owner of New York City­’s Michaeli Bakery who is suing Grubhub, Uber Eats and DoorDash for charging above the mandated 20% delivery fee cap set by the New York City Council in 2020. Michaeli cites in the suit that he was routinely …

DoorDash, Grubhub sue San Francisco over permanent delivery caps

Dive Brief: DoorDash and Grubhub filed a lawsuit on Friday against the City and County of San Francisco over a permanent delivery fee cap of 15%, which passed in late June. The companies call the cap “unnecessary,” “harmful” and “unconstitutional” and are seeking an unspecified amount of monetary damages. The lawsuit claims restaurants have a wide …

Delivery Co-ops Provide an Answer to High Fees and Low Wages

During the pandemic, homebound Americans more than doubled their food delivery orders, largely through third-party apps like Seamless and UberEats. COVID-19 lockdowns may have hastened the apps’ growth, but economists have tracked a dramatic uptick in the use of such platforms over the past five years. But the convenience of these apps masks an inherently predatory nature, with crippling …