GrubHub gonna Grub

If your business uses GrubHub, you must contact them or they are about to double your service fees:

Dear Restaurant Partner,

In April 2020, San Francisco enacted emergency COVID legislation capping commission rates for third-party delivery services at 15%. The San Francisco Board of Supervisors recently adopted a new ordinance updating this legislation, which will become effective in February 2023.

This means that on February 1, 2023, Grubhub will place all restaurants at their previously contracted rates. If you'd like to make any changes to your contract, please contact your Account Advisor. You continue to have the option to select our "Basic'' 15% package inclusive of delivery and marketing.

In June, the Board of Supervisors made the pandemic 15% cap on delivery fees "permanent", but then DoorDash and GrubHub sued the City, with the usual line of implausible bullshit that without higher fees they "might have to completely eliminate their operations in San Francisco." Suuuuuuure. But the Board of Supervisors blinked anyway, and said, "Wellllllll I guess it's ok if you continue to dark-pattern-hoodwink everyone into your extortionate 30%-and-higher rates, so long as there's still technically a way to get 15%."

Hey, I've got a question! Given that it takes exactly the same amount of time, effort and gasoline to deliver my $10 meal as my $100 meal, why does GrubHub get to charge 10× as much for the second one?

Followup question, does the delivery driver also make 10× as much on the second one? This question is rhetorical.

Anyway, please buy our pizza, it's really good! We make more money if you call us and order for pick-up, but deliveries are good, too.

Previously, previously, previously, previously, previously.

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2 Responses:

  1. the hatter says:

    So what do restaurants actually miss out on, if they revert/choose the Basic package ?  I guess the included marketing will put you on page 13,952 but are they being less obviously slimy too ?

  2. Carlos says:

    I would really like a requirement for the GrubHubs and UberEats of the world to show real pricing, which says out of the total you're being charged, exactly how much goes to (a) the restaurant, (b) the government (sales taxes), (c) the delivery driver, and (d) the intermediary company.

    People might - just might - behave a little differently if they saw their $30 meal ended up with $2 going to the delivery driver and $16 to the restaurant.


  • Previously