Grubhub controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Chicago sues DoorDash and Grubhub over alleged customer deception
Lawsuit filed
In 2021, the City of Chicago filed lawsuits against DoorDash and Grubhub, alleging that the platforms deceived customers and used unfair business practices. The companies called the lawsuits baseless. Grubhub also said it would defend its practices in court. The event concerns the City of Chicago's allegations against the two delivery platforms and the companies' responses; no further outcomes or details are included in the available account.
Company response
Denial — DoorDash
In separate statements, both DoorDash and Grubhub called the lawsuits "baseless."
Denial — Grubhub
"Every single allegation is categorically wrong and we will aggressively defend our business practices," a Grubhub spokesperson said in a statement.
Source excerpt
In separate statements, both DoorDash and Grubhub called the lawsuits "baseless."
The city also claims both platforms use a "bait-and-switch" method to attract customers with low delivery fees, only to charge additional ones when they are about to place their order.
The City of Chicago filed two sweeping lawsuits against DoorDash and Grubhub for allegedly deceiving customers and using unfair business practices.
2021
Massachusetts attorney general sues Grubhub over restaurant fees
Lawsuit filed
Massachusetts Attorney General Maura Healey sued Grubhub Holdings Inc., alleging that it charged Massachusetts restaurants fees above the state’s 15% cap during the COVID-19 public health emergency. The lawsuit seeks refunds and civil penalties; the allegations are not stated as a court finding.
Source excerpt
In a lawsuit filed Thursday in Suffolk Superior Court, Healey claims the company illegally charged fees to Massachusetts restaurants that exceeded the statutory fee cap in place during the COVID-19 public health emergency.
we strongly disagree with the allegations in this lawsuit.
Attorney General Maura Healey claims Grubhub charged fees to restaurants that exceeded Massachusetts' 15 percent fee cap.
2021
Zay Toon sues Grubhub over commissions on telephone calls
Lawsuit filed
Zay Toon Inc., which owns a Las Vegas restaurant, filed a lawsuit accusing Grubhub of charging restaurants commissions on calls lasting more than 45 seconds whether or not an order was placed. The complaint seeks relief for the plaintiff and a proposed class of restaurants.
Source excerpt
Zay Toon Inc., the owner of a Las Vegas, Nevada eatery, filed a lawsuit against Grubhub Holdings Inc. accusing the online food ordering platform of charging restaurants a commission on any telephone call over 45 seconds regardless of whether or not a food order was placed.
The complaint asserted claims against Grubhub for breach of contract, conversion, and violations of the Nevada Deceptive Trade Practices Act and the Illinois Consumer Fraud and Deceptive Business Practices Act.
2020
Antitrust and pricing allegations
Restaurants and consumers sued Grubhub and other delivery platforms, alleging that contractual restrictions and market power caused restaurants to maintain comparable prices across dine-in and delivery channels while absorbing substantial platform fees.
2020
Restaurant listing litigation
Restaurants brought class-action claims alleging that Grubhub listed businesses without permission or continued listing them after permission had been withheld, potentially diverting orders and generating commissions.
2020
Yum Brands sues Grubhub over distribution agreement
Lawsuit filed
Yum Brands filed a lawsuit against Grubhub, alleging that the online food-ordering platform violated a distribution agreement between the two companies. Grubhub denied the allegations and stated that it was willing to work with Yum to resolve the contract dispute. The dispute centers on the distribution agreement governing the companies' relationship, with Yum claiming breach and Grubhub rejecting the claim while expressing openness to cooperation.
Yum Brands filed suit against Grubhub, alleging that the online food-ordering platform violated a distribution agreement between the companies. Grubhub denied the allegations and said it was willing to work with Yum to resolve the contract dispute.
Company response
Denial — Grubhub
"We vigorously deny the allegations in the complaint," a spokesperson for Grubhub said via email.
Source excerpt
Yum Brands, the owner of Taco Bell, Pizza Hut and KFC, has filed suit against Grubhub Inc., alleging that the online food ordering platform violated a distribution agreement between the companies, according to CNBC.
The statement continued to say that Grubhub was happy to work with Yum! In order to resolve the contract dispute.
"We vigorously deny the allegations in the complaint," a spokesperson for Grubhub said via email.
2020
Customer files TCPA suit against GrubHub over alleged unsolicited texts
Lawsuit filed
Maria Thrasher filed a complaint against GrubHub alleging that the company sent her text messages without her consent, in violation of the Telephone Consumer Protection Act. According to the filing, Thrasher claimed she had not ordered from GrubHub and had not provided her phone number to the company. She sought statutory and treble damages in the suit.
Source excerpt
Thrasher contended that she did not order anything from GrubHub or from any restaurant. Furthermore, the plaintiff asserted that she did not provide GrubHub with her number nor express consent.
In the Central District of California on Wednesday, Maria Thrasher filed a complaint against GrubHub for violations of the Telephone Consumer Protection Act (TCPA) for purportedly sending the plaintiff unsolicited text messages.
The lawsuits were both filed Friday in Cook County Circuit Court.
2020
Lakeview hit-and-run victim sues Grubhub
Lawsuit filed
Bijan Choya Early filed suit against Grubhub and Aamir Mohammed, alleging negligence because Mohammed was able to access the platform and work as a driver. Grubhub said Mohammed was not actually its driver and had fraudulently used another contracted driver's account.
Company response
Clarification — Grubhub
Grubhub said Mohammed was not actually a Grubhub driver, and has never been contracted with the company. Instead, they said, he fraudulently used another contracted driver's account.
Source excerpt
Early has filed suit against Mohammed and Grubhub, alleging negligence since he was able to access the platform and work as a driver.
Grubhub said Mohammed was not actually a Grubhub driver, and has never been contracted with the company. Instead, they said, he fraudulently used another contracted driver's account.
2020
Great NH Restaurants sues DoorDash and Grubhub over alleged trademark infringement
Lawsuit filed
Great NH Restaurants filed suit against DoorDash and Grubhub, alleging unauthorized use of its restaurants’ logos and menus on their websites and apps. It seeks a permanent injunction and damages.
Source excerpt
Great NH Hampshire Restaurants, which owns the restaurants T-Bones, CJ’s Great West Grill, Cactus Jack’s and The Copper Door, is seeking a permanent injunction and damages, including the profits the companies made through its restaurants.
Bedford-based restaurant chain Great NH Restaurants has filed suit against digital food deliver companies Doordash and GrubHub over their unauthorized use of logos and menus on their websites an apps.
2019
Restaurant domain and referral-number allegations
Public reporting alleged that Grubhub registered restaurant-related web domains and used referral telephone numbers in ways that could redirect traffic or create commission exposure. Grubhub disputed the allegations and maintained that relevant contractual terms authorized the practices.
2018
Driver classification litigation
Drivers alleged that Grubhub improperly treated them as independent contractors and consequently avoided obligations involving minimum wages, overtime and expenses. One 2018 decision rejected a particular driver's misclassification claim, while separate litigation continued.
2016
Political statement controversy
A company-wide message from Matt Maloney after the 2016 U.S. presidential election was interpreted by critics as asking employees who disagreed with its political position to resign. Maloney later said the message had been misconstrued and clarified that the company opposed hateful or discriminatory workplace conduct rather than employees' voting choices.