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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.
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"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 an employee does. Grubhub drivers are allegedly required to pay some of their expenses. [64]
In 2019, the company announced it would lay off all of its employed drivers, and move to a contract-only model, similar to Grubhub and DoorDash. [5] The move resulted in 2,300 drivers being laid off. [6] Carl Grimstad was appointed Waitr's CEO in 2020 and tasked with recovering the company after a US$291 million net loss in 2019. Despite the ...
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.
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.
The company said they had also implemented a range of measures to support both their drivers and restaurants on their platform, such as offering contactless delivery, and halved all commission on pickup orders until further notice. [19] In May 2024, Menulog ceased operations in New Zealand. [20] [21]
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