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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.
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.
Originally, Grubhub was ordered to pay $140 million, which would have been one of the largest penalties against a food delivery service. However, Grubhub said it was unable to pay the full amount ...
Online food ordering is the process of ordering food, for delivery or pickup, from a website or other application. The product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a virtual restaurant) or food that has not been specially prepared for direct consumption (e.g., vegetables direct from a farm/garden, fruits, frozen meats. etc).
Grubhub Inc. (stylized in all caps) is an American online and mobile prepared food ordering and delivery platform based in Chicago, Illinois. Founded in 2004, it has been a subsidiary of the Dutch company Just Eat Takeaway since 2021. [2]
It purchased Grubhub in the United States but announced it was selling it in 2024. Just Eat Takeaway operate various food ordering and delivery platforms in twenty countries, [ 4 ] where customers can order food online from restaurants’ menus, and have it delivered by restaurant or company couriers directly to their home or workplace using an ...
Chicago-based Grubhub, which allows consumers to order delivery from nearby restaurants via drivers contracted with the company, will pay $24.8 million in restitution, while $200,000 will fund the ...
In addition to paying for the food, customers will often have to pay a delivery fee. The delivery fee will cover the cost of gas or other transportation costs, but usually does not go to the delivery person. [21] For meal delivery, it is common to give the deliverer an optional tip upon paying for the order.