Grubhub Sued

The Lempert Report
March 30, 2022

Phil: So another lawsuit GrubHub is now being sued by the district of Columbia what's going on. 

Sally: Yes, they're being accused of deceptive trade practices. And, and apparently GrubHub is listing more than a thousand partner restaurants available for delivery in their app, but they don't, they don't have contracts with these restaurants. And so there, it what's happening is that they're posting out of date menu prices. There are typically higher prices for the people that are ordering. So there's a, a lot of gray area there and what's going on and how this third party platform is operating?

Phil: Yeah. And those thousand restaurants you name that's just in, in Washington DC, you know so, you know, they don't have these deals. It's amazing to me. And also the other thing that the suit says that consumers have to pay various fees such as delivery fee, service fee, and a small order fee for purchases under $10, which just keeps getting that price up and up and up. This isn't the first time we've seen it. Chicago has done the same thing, San Francisco, there's a lawsuit against them. These, all these delivery services are really gonna come under a lot of scrutiny. I think over the next few months, as we are going back to who somewhat normal and less reliant on delivery as, as the pandemic eases up.