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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 ...
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.
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 ...
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.
Drivers then review deliveries in their area on their mobile app and may choose to offer to take on individual [22] or groups of deliveries along the same route. Gigs are then assigned to drivers by Roadie's algorithm. According to the company, this model encourages drivers to choose Gigs that align with their planned schedules and routes.
On 20 April 2022, Just Eat Takeaway announced it was considering a full or partial sale of Grubhub, of which it fully completed its purchase in 2021. [37] [38] The consideration is based on investor pressure and decreased profits, with Just Eat Takeaway's entire market capitalisation lower than the price for Grubhub. [39]
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.
The cost breakdown analysis is even more effective when repeated constantly, so that changes in the respective shares in total costs of the various cost drivers can be tracked down. Over a five-year period, the share of expenses for tires might have risen from 5% to 8%, accompanied by a decrease of expenses for personnel from 35% to 32%, which ...