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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.
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.
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 drivers are allegedly required to pay some of their expenses. [64] Because of how they are paid, the plaintiffs claim they may often get paid below federal or state minimum wage, even when they work long hours. Many drivers allegedly work more than 40 hours a week but do not receive overtime rates for their work. [65]
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.
A GrubHub spokesperson said the company has more than 200,000 active delivery partners nationwide, and a Lyft spokesperson said the company has over one million drivers based in the US and Canada ...
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]
A Grubhub driver was caught on video eating a customer’s food by Martin Luzanilla, ... For premium support please call: 800-290-4726 more ways to reach us. Sign in. Mail. 24/7 Help.