It was an item typical of internet publishing, not quite news yet still fascinating, all about Grubhub pricing. It described a Chicago pizza place that delivered through the app-based delivery Grubhub that only got to keep about $375 out of more than $1,000 in March sales. The rest went to Grubhub for fees, commissions and promotions. This […]
Tag Archives: Ethics
2 New Mexico Restaurateurs Are Adding Fuel To The Fire Under GrubHub
As restaurants struggle to stay afloat during the coronavirus pandemic, many have turned to delivery apps to serve customers until it is safe to return to dine-in service. But the fees these companies charge have left restaurant owners reeling. City councils in New York, Los Angeles, San Francisco, Seattle and Washington, D.C., have recently voted […]
Silicon Valley Invents “The Free Lunch” – The Doordash-Pizza Arbitrage
Authored by Ranjan Roy via The Margins substack, If capitalism is driven by a search for profit, the food delivery business confuses the hell out of me. Every platform loses money. Restaurants feel like they’re getting screwed. Delivery drivers are poster children for gig economy problems. Customers get annoyed about delivery fees. Isn’t business supposed to […]
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 […]
Evading Grubhub
“Support Local Businesses” is a motto repeated in signage and online posts by Evanston locals. Delivery orders are vital to restaurants attempting to stay in business while the Illinois stay-at-home order is in effect. For customers ordering food, third-party delivery apps are convenient and popular. But with their convenience comes controversy. Grubhub, a Chicago-based company […]
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 […]
Grubhub delivery service accused of targeting local restaurants in federal class-action suit
DENVER (KDVR) — The popular food delivery service Grubhub is “intentionally misleading consumers during a pandemic to maximize profits” at the expense of many small business owners, according to claims made in a federal lawsuit filed Monday in Denver. “I just think that everyone needs to play fair, and Grubhub just isn’t doing that,” said Ross […]
Grubhub CEO responds to backlash over fees amid pandemic
Grubhub’s CEO is facing outrage over the company’s businesses practices during the coronavirus pandemic. Restaurants have long complained about the hefty fees delivery services such as Grubhub charge, but because of the pandemic, many have been forced to the rely on delivery to maintain some flow of income. San Francisco and Seattle recently put in place emergency […]
Metro Detroit restaurant owners say Grubhub added them to service without permission
DETROIT – Several local restaurants are upset a food delivery app has been selling their food to customers without their knowledge. They’ve been fighting to get it stopped and claim they were given the run around. M Street Baking Company in Howell is open for takeout during the pandemic. Like many restaurants they were approached to […]
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 […]