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A service charge is a fee that can be assessed to cover the actual service provided to a customer, or for administrative or processing costs related to the product or service the customer is ...
Grubhub will pay $25 million to settle charges it misled customers about the cost of their delivery and drivers about how much they could earn on the food-delivery platform.
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A gratuity (often called a tip) is a sum of money customarily given by a customer to certain service sector workers such as hospitality for the service they have performed, in addition to the basic price of the service. Tips and their amount are a matter of social custom and etiquette, and the custom varies between countries and between settings.
In February 2020, the company announced the launch of its new Grubhub+ monthly subscription program, which offers free, unlimited food delivery from partner restaurants for a monthly fee. [47] In 2021, the company announced a partnership with Yandex to add Yandex delivery robots to the Grubhub platform for food deliveries in colleges. [48]
The settlement requires Grubhub to cease the practices and pay $25 million. The agencies sought a $140 million judgment against the company, but reduced it to what Grubhub is able to pay, they said.
The now-viral post revealed one of Badalamenti's restaurant clients brought in $1,042.63 worth of orders during the month — but only pocketed $376.54 after all of Grubhub's fees were deducted.
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