We're thankful to Senator Schumer and Council Member Gjonaj for shining a light on Grubhub's questionable business practices.
While Grubhub's announcement is a step in the right direction, it is a small step, and much more must be done. Their announcement does not even address the major complaint from so many restaurants, which is that their fees have continued to go up as they dominated the market. Here is our response to Grubhub's announcement:
- Grubhub extending the look-back period for restaurants to review all phone orders from 60 to 120 days is absurd. If Grubhub charged a restaurant a bogus fee 300 days ago they must still refund it. There should be NO TIME LIMIT on look-back periods. The process of listening to phone recordings is extremely time-consuming and the burden should not be on restaurants. Grubhub should hire an independent third party to listen to all phone calls to determine if an order was placed. If an order was not placed, Grubhub must reimburse the restaurant the bogus fees.
- Grubhub will deploy a website that makes it even easier for restaurants to request direct control of any URLs registered or microsites they created for restaurants. This is good but they must actively promote this service to all current and former restaurant clients.
- Grubhub will set up a series of restaurant roundtables to foster more direct dialogue with their restaurant clients. Because Grubhub didn't announce additional reforms of their business practices, we should be very skeptical that these roundtables are not used as a publicity stunt to use restaurants as pawns and distract from the fact that they are not making more meaningful changes.
Click here to read Grubhub's announcement.