When Robert Magiet opened TaKorea Cocina in Ukrainian Village in 2019, he couldn’t foresee the upcoming global pandemic that threatened the very existence of his restaurant, although he was able to get through it. Now, a service that became widely popular during the pandemic continues to threaten TaKorea Cocina’s existence: third-party apps used to take …
Tag Archives: Commission Rates
Third-party delivery companies sued by diners for anti-trust violations
Third-party delivery companies are facing more legal scrutiny as a New York federal judge allowed a lawsuit accusing Uber Eats, Postmates, and Grubuhb of menu price exploitation to move forward. The anti-trust lawsuit was originally filed in July 2020 and accused the third-party delivery companies of monopolizing delivery prices by not allowing restaurants who contract with them …
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Grubhub, Uber Eats, Postmates must face diners’ lawsuit over U.S. restaurant prices
NEW YORK, March 30 (Reuters) – A U.S. judge on Wednesday said Grubhub, Uber Eats and Postmates must face an antitrust lawsuit by diners who accused them of driving up menu prices by exploiting their dominance in meal deliveries during the COVID-19 pandemic. U.S. District Judge Lewis Kaplan in Manhattan said it was reasonable to …
DC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices
District of Columbia Attorney General Karl Racine is suing Grubhub for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. The suit demands an end to a laundry list of allegedly illegal practices as well as financial restitution and civil penalties. The newly filed lawsuit argues that Grubhub’s promises of …
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Lawsuit prompts Grubhub to add disclosures about hidden fees
Washington D.C. Attorney General Karl Racine announced today that his office filed a lawsuit against Grubhub for “misleading District residents and taking advantage of local restaurants to boost its own profits.” The lawsuit alleges that Grubhub violated D.C.’s Consumer Protection Procedures Act (CPPA) in eight different ways, which mostly center on false advertising. The filing references misleading prices (prices …
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US restaurant chain sues Google for directing customers away
San Francisco: A restaurant group in the US has sued Google for directing customers to unauthorised Google-branded food ordering web pages rather than sending them to the restaurant’s own website. The Florida-based restaurant group called Left Field Holdings, that runs Lime Fresh Mexican Grill franchises, alleged in the lawsuit that Google employs “bait-and-switch” tactics by …
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Google “hijacked millions of customers and orders” from restaurants, lawsuit says
Google is being sued by a Florida restaurant group alleging that the tech company has been setting up unauthorized pages to capture food orders rather than directing them to the restaurant’s own site. Google uses “bait-and-switch” tactics to get customers to place takeout or pickup orders through “new, unauthorized, and deceptively branded webpages,” according to the …
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Restaurants caught between suppliers, delivery drivers as gas prices rise
EUGENE, Ore. – Uber Eats has added a 45 cent surcharge to orders to help drivers cope with rising gas prices. But if you want to help local eateries emerging from the pandemic, Stephen Sheehan at Elk Horn Brewery says to skip delivery and opt for dine-in or carry out. “It doesn’t support local businesses to go through Uber …
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Food delivery and fees in New Haven
As the use of food delivery services surged during the pandemic, some restaurants have struggled to cope with the fees imposed by large companies like DoorDash, UberEats, GrubHub and Snackpass. Over the course of the last two years, delivery services have provided an opportunity for citizens, whether contagious with COVID-19 or concerned about exposure to the virus, …
DoorDash to penalize McDonald’s outlets that take too long on delivery orders
McDonald’s restaurants that slow down DoorDash delivery workers by making them wait for orders that aren’t ready on time are about to face stiff financial penalties, according to a report. DoorDash will start dinging eateries by raising its commission rates — which will jump as high as 20% of an order — that McD’s restaurants …
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