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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.
As for delivery drivers, Grubhub told prospective gig workers that they’d make much more money than they usually did. In some cases, they were told $26 per hour, but in reality only the top 2% ...
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 was a subsidiary of the Dutch company Just Eat Takeaway since 2021. [2] In 2024, Wonder Group Inc. bought Grubhub from Just Eat Takeaway for $650 million. [3]
Just Eat is an online food order and delivery platform. It was founded in 2001 in Kolding, Denmark, as a food delivery company, and later headquartered in London, United Kingdom, from 2006 (as Just Eat plc) [a] until it was purchased by Netherlands-based Takeaway.com in 2020 forming Just Eat Takeaway.com. [1]
On 19 August 2022, Just Eat Takeaway.com sold its 33% stake in iFood to Prosus (via Movile) for €1.8 billion. [43] [44] [12] In November 2024, Just Eat Takeaway announced that it was selling Grubhub to restaurant chain Wonder Group Inc for $650m. [45] Just Eat bought Grubhub in a $7.3bn deal agreed in June 2020. [46]
Postmates was founded in 2011 by Bastian Lehmann, Sean Plaice, and Sam Street. [6]In December 2014, Postmates opened its application programming interface to merchants to allow small businesses to compete in the business of consumer goods delivery with larger companies such as Amazon.
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.