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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.
Grubhub, one of the most prolific third-party delivery companies, was just raked over the coals by the FTC in a lawsuit for misleading customers. Grubhub Ordered to Pay $25M Over Junk Fees and ...
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.
Wallace and Bryant argue that drivers work on scheduled shifts, and must work in a certain area. "The drivers as a general matter cannot engage in personal non-work activities during their GrubHub shifts," the complaint states, meaning that they essentially function as employees. They also allege that they do not receive the same benefits that ...
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.
If more people eat in a restaurant, the catering cost will increase, although revenue will also increase. Some examples of indirect costs and their drivers are: indirect costs for maintenance, with the possible driver of this cost being the number of machine hours; or the indirect cost of handling raw-material cost, which may be driven by the ...
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Grubhub's (GRUB) second-quarter 2020 results reflect growth in gross food sales and a solidified diner base amid the coronavirus chaos. However, higher costs and expenses hurt profitability.