Class-action suit accuses Grubhub of using “bad” delivery experience to pressure restaurants to sign up; the tactic is widely practiced in the delivery sector by rivals, including market leader DoorDash
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A year ago this week, delivery operator Grubhub abandoned its legacy policy of never listing non-partner restaurants on its platform — a strategy rivals like DoorDash have used for years to gain market share, even if it means upsetting a potential restaurant client.
The tactic has led to Grubhub adding more than 150,000 non-partner restaurants to its site. But now, the Chicago-based company faces a class-action lawsuit for the behavior. The Farmer’s Wife in Northern California and Antonia’s Restaurant in North Carolina sued the company Wednesday, accusing Grubhub of misleading both consumers and restaurant operators by adding dining establishments on their delivery marketplace without consent.
When adding non-partner restaurants, Grubhub...
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