Ana McClain was confused when a customer came into her restaurant, Lion Bridge Brewing Company in Cedar Rapids, in March asking why her food was never delivered. The brewery McClain co-owns never got the order — and it didn’t partner with any delivery services. The woman explained she placed her order through the restaurant delivery […]
Tag Archives: Ethics
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 […]
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 […]
DOORDASH ACCUSED OF STEERING ORDERS FROM NON-PARTNER RESTAURANTS
A lawsuit accuses third-party delivery company DoorDash of steering business from non-partner restaurants by incorrectly listing them as closed or too far away for delivery. The suit was filed Thursday in California on behalf of Lona’s Lil Eats, an Asian-fusion restaurant in St. Louis. Though Lona’s has no official relationship with DoorDash, it has a page on […]
California law bars delivery companies from adding non-partnered restaurants
Dive Brief: California Gov. Gavin Newsom signed two pieces of legislation into law that would create regulations for the food delivery industry, according to the Los Angeles Times. The first initiative, signed on Wednesday, requires aggregators to sign formal, written agreements with restaurants before adding the company to their marketplaces and providing delivery. The second law, signed […]
Third-party delivery fees continue to vex local restaurants
Efforts to limit the fees that third-party delivery companies can charge local restaurants have run into a few snags. More than a month after Clark County adopted an emergency ordinance capping fees at 15 percent, moves to pass similar measures in Las Vegas, North Las Vegas and Henderson have stalled. Moreover, Clark County Commissioner Tick […]