Grubhub, now owned by Just Eat Takeaway, has a troubled regulatory history. The FTC found they engaged in systematic deception of both consumers and restaurants. While the settlement requires practice changes, the underlying business model and terms remain similar to competitors.
The FTC found Grubhub advertised lower prices than customers actually paid by hiding fees until checkout. While required to improve disclosure, the fee structure remains complex.
Grubhub listed restaurants without their consent, causing problems when orders came in that restaurants couldn't fulfill. This practice is now prohibited but demonstrates the platform's approach to growth.
Grubhub created websites mimicking restaurant sites that captured phone orders and charged commissions. Customers thought they were ordering directly from restaurants. This practice is now prohibited.
Like competitors, Grubhub requires mandatory arbitration and prohibits class actions. Given their history of deceptive practices, this limits consumer recourse for future issues.
While fees must now be disclosed earlier, the structure remains complex: delivery fees, service fees, small order fees, and driver benefits fees. Total costs can significantly exceed menu prices.
Grubhub drivers face the same contractor classification, algorithmic management, and rating-based deactivation as other platforms. No significant differentiation in worker treatment.
Restaurant partners face significant requirements:
Acquired by Just Eat Takeaway in 2021, Grubhub has seen: