Grubhub
Corporate office · Fishtown
1341 N Delaware Ave, Philadelphia, PA 19125
Highlights
Delivery app with misleading promotions and poor customer service
1341 N Delaware Ave, Philadelphia, PA 19125 Get directions
Delivery app with misleading promotions and poor customer service
1341 N Delaware Ave, Philadelphia, PA 19125 Get directions
"A same-day lunchtime promotion offered a $15 discount with the promo code “FREELUNCH” for orders placed between 11 a.m. and 2 p.m., though customers remained liable for any applicable taxes, fees, and optional tips. The rollout was chaotic: the app and website began crashing within minutes, payments were rejected, error messages proliferated, and many restaurants closed orders as demand spiked, with redemptions reported at six times a similar 2021 promotion and peaks of about six thousand orders per minute. Restaurants struggled with piled-up orders awaiting couriers and some owners said they were not fully notified in advance despite the company’s claim of outreach; frustrated users took to social media while the service issued perfunctory acknowledgments and reminders to place last-minute orders. Observers placed the fiasco in a broader context of delivery platforms using aggressive promotions to regain business amid falling demand and profitability challenges, noting that glitchy, last-minute discounts risk damaging relationships with restaurant partners even as the lure of “free lunch” draws heavy consumer interest." - Bettina Makalintal
"A dominant third-party delivery platform criticized for charging restaurants punitive commission rates—often 20–30% per order—and using aggressive sales tactics to secure sign-ups. Practices attributed to it and similar companies include listing restaurants without consent, deferring rather than waiving fees during crises, and emphasizing consumer convenience via promotions while squeezing restaurant margins and reducing transparency around courier compensation." - Deepti Sharma
"The company has been accused of several controversial practices: a class-action suit alleges it charged restaurants for calls routed through proxy phone numbers, and reporting revealed it purchased restaurant web domains without consent. Facing a 43% stock drop and heightened competition, leadership has defended listing restaurants without formal partnerships as a cheap, rapid way to expand inventory and retain diners, while admitting the “non-partnered” model produces a poor experience for diners, drivers and restaurants. Executives say listings can be removed on request and that a sales team will try to convert unlisted businesses to partners, arguing the tactic follows industry trends and helps restaurants gain orders despite stakeholder backlash." - Jaya Saxena
Nicholas Chin
Renee Workman
Nash Williams
toni wharton
Majin v
cynthia lebron
Lindsay Merlina
Rosemarie Vecchio
