The City of Chicago has filed two separate lawsuits in opposition to DoorDash and GrubHub. While the complaints level to alleged misconduct particular to every firm, they broadly accuse DoorDash and GrubHub of using an identical set of unfair enterprise practices.
Specifically, the town claims that each DoorDash and GrubHub have persistently marketed supply providers from eating places that by no means consented to a list on their platforms. The metropolis additionally alleges they make use of “bait-and-switch” ways through the use of deceptively small supply charges to lure clients earlier than hitting them with varied different bills on the finish of a transaction. Finally, it says they each cover the actual fact many eating places cost much less for the gadgets on their menu once you order immediately from them.
DoorDash referred to as the lawsuit “baseless” and a “waste” of taxpayer cash. “DoorDash has stood with the City of Chicago throughout the pandemic, waiving fees for restaurants, providing $500,000 in direct grants, creating strong earning opportunities and delivering food and other necessities to communities in need,” a spokesperson for the corporate informed Engadget.
GrubHub echoed the feelings of its competitor. “Every single allegation is categorically wrong, and we will aggressively defend our business practices,” a GrubHub spokesperson stated. “We look forward to responding in court and are confident we will prevail.”
In taking the 2 firms to court docket, the town says it seeks to mandate better transparency from DoorDash and GrubHub, in addition to monetary restitution for eating places and customers harm by their alleged actions.
Separately, the DoorDash lawsuit alleges the corporate misled clients about the way it was utilizing tricks to pay its supply staff. If that sounds acquainted, it is as a result of DoorDash agreed to pay a $2.5 million settlement towards the top of 2020 to settle allegations associated to that very same challenge.
For Chicago, that is the newest effort by the town to impose further rules on meals supply apps. In May 2020, it carried out a coverage that noticed each DoorDash and GrubHub required to incorporate an itemized breakdown that lists how a lot eating places pay once you order from them utilizing an app.
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