Grubhub

File:Food Delivery Service.jpg

The original Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney to create an alternative to paper menus.{{cite web|last=Bhasin|first=Kim|date=February 22, 2012|title=GrubHub's CEO On The Shock Of Outgrowing Three Offices In A Few Short Years|url=http://www.businessinsider.com/grubhubs-ceo-on-the-shock-of-outgrowing-three-offices-in-a-few-short-years-2012-2|website=Businessinsider.com|access-date=October 2, 2013}} Two years later, in 2006, Maloney and Evans won first place in the University of Chicago Booth School of Business's Edward L. Kaplan New Venture Challenge with the business plan for Grubhub.{{cite web|date=July 11, 2006|title=Grubhub.com Wins the University of Chicago New Venture Challenge|url=http://www.prweb.com/releases/2006/07/prweb409794.htm|archive-url=https://web.archive.org/web/20080913074117/http://www.prweb.com/releases/2006/07/prweb409794.htm|url-status=dead|archive-date=September 13, 2008|website=Prweb.com|access-date=November 11, 2016}}

In November 2007, Grubhub secured $1.1 million in Series A funding, led by Amicus Capital and Origin Ventures for the purpose of expanding into San Francisco and New York markets.{{cite web|date=November 13, 2007|title=GrubHub Secures $1.1 Million in Series A Funding From Top Venture Firms|url=http://www.prnewswire.com/news-releases/grubhub-secures-11-million-in-series-a-funding-from-top-venture-firms-59844392.html|website=Prnewswire.com|access-date=November 14, 2016|archive-url=https://web.archive.org/web/20160304001753/http://www.prnewswire.com/news-releases/grubhub-secures-11-million-in-series-a-funding-from-top-venture-firms-59844392.html|archive-date=March 4, 2016|url-status=dead}} In March 2009, Grubhub earned $2 million in Series B funding, led by Origin Ventures and Leo Capital,{{cite web|last=Rao|first=Leena|title=Food Delivery Service GrubHub Secures $2 Million In Series B Funding|url=https://techcrunch.com/2009/03/23/food-delivery-service-grubhub-secures-2-million-in-series-b-funding|website=Techcrunch.com|date=23 March 2009 |access-date=October 2, 2013}} which was followed by $11 million in Series C funding, led by Benchmark Capital in November 2010.{{cite news|last=Kopytoff|first=Verne|title=GrubHub Gets a Cash Delivery|url=http://bits.blogs.nytimes.com/2010/11/08/grubhub-gets-a-cash-delivery|access-date=October 2, 2013|newspaper=The New York Times|date=November 8, 2010}} In March 2011 $20 million in Series D funding raise was led by DAG Ventures.{{cite web|last=Rao|first=Leena|title=Exclusive: Food Delivery Search Engine GrubHub Raises $20 Million|url=https://techcrunch.com/2011/03/09/exclusive-food-delivery-search-engine-grubhub-raises-20-million|website=Techcrunch.com|date=9 March 2011 |access-date=October 2, 2013}}

Grubhub's portfolio of brands includes Seamless, AllMenus, MenuPages, LevelUp, and Tapingo. Seamless is an online and mobile food ordering platform for regional restaurants active in the U.S. and London.{{cite web|url=https://corporate.seamless.com/about-us/|title=About Us|website=Seamless Corporate Accounts|access-date=6 February 2019|archive-date=22 November 2015|archive-url=https://web.archive.org/web/20151122010603/https://corporate.seamless.com/about-us/|url-status=dead}}

In September 2011, Grubhub secured $50 million in Series E funding and acquired New York–based competitor Dotmenu, the parent company of Allmenus and Campusfood.{{cite news|last=Brustein|first=Joshua|url=http://bits.blogs.nytimes.com/2011/09/20/grubhub-raises-another-50-million-acquires-dotmenu|title=GrubHub Raises Another $50 Million, Acquires Dotmenu|date=September 20, 2011|work=The New York Times|access-date=October 2, 2013}} Grubhub completed the acquisition of AllMenus that month.{{Cite news|url=https://www.reuters.com/article/idUS213480+21-Sep-2011+BW20110921|title=GrubHub Secures $50 Million and is Acquiring Campusfood and Allmenus|date=September 21, 2011|newspaper=Reuters|access-date=May 12, 2016}}{{dead link|date=July 2021|bot=medic}}{{cbignore|bot=medic}} MenuPages was acquired by Seamless in September 2011.{{cite web|url=http://bits.blogs.nytimes.com/2011/09/26/seamless-acquires-menupages-in-race-for-restaurants/|title=Seamless Acquires Menupages in Race for Restaurants|last=Brustein|first=Joshua|website=Bits Blog|date=26 September 2011|access-date=May 12, 2016}}

DiningIn, an online ordering and food delivery company based in Brighton, Massachusetts, was acquired by Grubhub in February 2015.{{cite news|last=Castellanos|first=Sara|date=February 5, 2015|url=http://www.bizjournals.com/boston/blog/techflash/2015/02/grubhub-acquires-brighton-online-restaurant.html|title=GrubHub acquires Brighton online restaurant delivery service DiningIn|newspaper=Boston Business Journal|access-date=June 8, 2015}} Restaurants on the Run, a corporate food delivery company based in Aliso Viejo, California, was acquired by Grubhub in February 2015.[https://www.reuters.com/article/grubhub-results-idUSL4N0VF5YF20150205 "UPDATE 2-GrubHub goes direct to diners after acquisitions"], Reuters.com, February 5, 2015.

In December 2015, Grubhub acquired Delivered Dish, a restaurant delivery service in seven markets across the Pacific Northwest and Southwest, including Denver, Las Vegas, San Diego, Portland, El Paso, and Albuquerque.{{cite news|url=http://www.chicagotribune.com/bluesky/originals/ct-grubhub-acquires-delivered-dish-bsi-20151207-story.html|title=GrubHub acquires Delivered Dish of Portland, Ore.|author=Amina Elahi|publisher=Chicago Tribune|date=December 7, 2015}}{{cite web|url=http://www.chicagotribune.com/bluesky/originals/ct-grubhub-acquires-delivered-dish-bsi-20151207-story.html|title=GrubHub acquires Delivered Dish of Portland, Ore.|website=Chicagotribune.com|date=7 December 2015 |access-date=May 12, 2016}} LAbite, a Los Angeles–based restaurant delivery service, was acquired by Grubhub in May 2016.{{cite news|url=http://www.chicagobusiness.com/article/20160503/BLOGS11/160509953/grubhubs-stock-dips-on-slower-growth|title=Grubhub's stock dips on slower growth|publisher=Crain's Chicago Business|author=John Pletz|date=May 3, 2016}}

File:GrubHub Logo 2016.svg

In August 2017, Grubhub agreed to acquire Eat24 from Yelp for $287.5 million, subject to regulatory review.{{Cite news|url=https://www.inc.com/associated-press/grubhub-buys-yelp-eat24-287-million.html|title=Grubhub to Buy Yelp's Eat24 for $287.5 Million|date=4 August 2017|work=Inc|agency=Associated Press|access-date=11 July 2017}} In October 2017, Grubhub announced that it had completed its acquisition of Eat24.{{cite press release|date=October 10, 2017|url=https://media.grubhub.com/media/press-releases/press-release-details/2017/Grubhub-Completes-Acquisition-of-Eat24/default.aspx|title=Grubhub Completes Acquisition of Eat24|publisher=Grubhub|access-date=6 February 2019|url-status=dead|archive-url=https://web.archive.org/web/20180304230931/https://media.grubhub.com/media/press-releases/press-release-details/2017/Grubhub-Completes-Acquisition-of-Eat24/default.aspx|archive-date=4 March 2018}} In late 2018 Grubhub shut down the Eat24 brand.{{Cite news|last=Adams|first=Erika|url=https://table.skift.com/2018/07/29/grubhub-shuts-down-eat24/|title=Grubhub Shuts Down Eat24|date=29 July 2018|publisher=Skift Table}}

Certain assets were acquired from 11 franchisee-owned OrderUp markets in September 2018. Certain assets from 27 OrderUp markets had already been acquired in 2017.{{cite press release|date=September 13, 2018|url=https://media.grubhub.com/media/press-releases/press-release-details/2018/Grubhub-Completes-Acquisition-of-LevelUp/default.aspx|title=Grubhub Completes Acquisition of LevelUp|website=GrubHub|access-date=6 February 2019|url-status=dead|archive-url=https://web.archive.org/web/20181215022326/https://media.grubhub.com/media/press-releases/press-release-details/2018/Grubhub-Completes-Acquisition-of-LevelUp/default.aspx|archive-date=15 December 2018}} GrubHub completed its acquisition of OrderUp in October 2018.{{Cite news|url=https://www.stwnewspress.com/news/grubhub-acquires-orderup-expands-into-stilllwater-market/article_a9869415-7612-5a5f-8535-2890f1aaf9e2.html|title=Grubhub acquires OrderUp, expands into Stilllwater market|first=Michelle|last=Charles|date=October 29, 2018|newspaper=Stillwater News Press|access-date=2020-02-10}}

LevelUp, a Boston-based diner engagement and payment solutions platform was acquired by Grubhub in September 2018. The acquisition of LevelUp was for a reported $390 million cash.{{cite web|url=https://techcrunch.com/2018/07/25/grubhub-acquires-levelup/|title=Grubhub acquires payments and loyalty company LevelUp for $390M|website=Social.techcrunch.com|last=Ha|first=Anthony|date=25 July 2018 |access-date=6 February 2019}} Tapingo, a San Francisco–based platform for campus food ordering was acquired by Grubhub in November 2018.{{cite press release|date=November 7, 2018|url=https://media.grubhub.com/media/press-releases/press-release-details/2018/Grubhub-Completes-Acquisition-of-Tapingo/default.aspx|title=Grubhub Completes Acquisition of Tapingo|publisher=Grubhub|access-date=6 February 2019|url-status=dead|archive-url=https://web.archive.org/web/20181215022315/https://media.grubhub.com/media/press-releases/press-release-details/2018/Grubhub-Completes-Acquisition-of-Tapingo/default.aspx|archive-date=15 December 2018}}

In March 2019, Grubhub took over SkipTheDishes' operations in the United States after SkipTheDishes announced its exit from the U.S. market.{{Cite news|last=Thompson|first=Sam|date=April 5, 2019|title=Winnipeg-based delivery company Skip the Dishes backing out of U.S. market|url=https://globalnews.ca/news/5134337/winnipeg-based-delivery-company-skip-the-dishes-backing-out-of-u-s-market/|access-date=2020-12-17|website=CJOB|language=en-US}}

By mid-2020, in the middle of the coronavirus pandemic where demand for services delivering food from restaurants and takeaways surged, Grubhub announced it was keeping its drivers safe by offering contact-free delivery as well as the option to order pickup for anyone who felt more comfortable getting the food themselves.{{cite web|url=https://www.insider.com/food-delivery-services-grubhub-postmates-uber-eats-reacting-adapting-coronavirus-2020-3|title=Here's how delivery services like Grubhub, Postmates, and Uber Eats are adapting to the coronavirus restrictions and safety precautions|first=Rachel|last=Askinasi|date=18 April 2020|work=Insider}}

On June 9, 2020, Netherlands based Just Eat Takeaway announced an agreement to buy Grubhub for $7.3 billion in stock.{{cite news |last1=Conger |first1=Kate |last2=Satariano |first2=Adam |last3=de la Merced |first3=Michael |title=Just Eat Takeaway to Acquire Grubhub for $7.3 Billion |url=https://www.nytimes.com/2020/06/10/technology/uber-grubhub-just-eat.html |access-date=11 June 2020 |work=New York Times |date=June 10, 2020}}

In November 2024, Wonder Group Inc. bought Grubhub from Just Eat Takeaway for $650 million.{{Cite web |last=Mehta |first=Ivan |date=2024-11-13 |title=Just Eat Takeaway sells Grubhub to Wonder for $650 million |url=https://techcrunch.com/2024/11/12/just-eat-takeaway-sells-grubhub-to-wonder-for-650-million/ |access-date=2024-11-13 |website=TechCrunch |language=en-US}}{{Cite news |last=Partridge |first=Joanna |date=2024-11-13 |title=Just Eat Takeaway to sell US arm Grubhub at a loss of more than $6.5bn |url=https://www.theguardian.com/business/2024/nov/13/just-eat-takeaway-to-sell-us-arm-grubhub-in-cut-price-deal |access-date=2024-11-13 |work=The Guardian |language=en-GB |issn=0261-3077}}

In 1999, New York lawyer Jason Finger founded SeamlessWeb to provide companies with a web-based system for ordering food from restaurants and caterers. Six years later, in 2005, SeamlessWeb introduced a free ordering service to consumer diners to complement the existing corporate-ordering service.{{cite news |last=Tedeschi |first=Bob |date=June 13, 2005 |title=Ordering Takeout Online: A Dot-Com Idea Returns for a Second Try |work=The New York Times |url=https://www.nytimes.com/2005/06/13/technology/13ecom.html |access-date=October 2, 2013}} In April 2006, SeamlessWeb was acquired by Aramark and integrated into its Food, Hospitalities, and Facilities segment.{{cite web |date=5 June 2006 |title=Aramark Corp. has acquired SeamlessWeb Professional Solutions, Inc. |url=http://food-management.com/archive/aramark-corp-has-acquired-seamlessweb-professional-solutions-inc |access-date=October 2, 2013 |publisher=Food Management}}

Jonathan Zabusky was named president of Seamless in 2009, and by June 2011, Seamless was re-privatized, as Boston-based Spectrum Equity Associates invested $50 million for a minority stake in the company from Aramark. The company then changed its name from SeamlessWeb to Seamless.{{cite web |date=June 8, 2011 |title=ARAMARK Sells Stake In Online Food Ordering Service SeamlessWeb For $50M |url=https://techcrunch.com/2011/06/08/aramark-sells-stake-in-online-food-ordering-service-seamlessweb-for-50m |access-date=November 14, 2016 |website=TechCrunch.com}}

In September 2011, Seamless acquired MenuPages,{{cite news |last=Brustein |first=Joshua |date=September 26, 2011 |title=Seamless Acquires Menupages in Race for Restaurants |work=The New York Times |url=http://bits.blogs.nytimes.com/2011/09/26/seamless-acquires-menupages-in-race-for-restaurants |access-date=October 2, 2013}} and in February 2012, Seamless released an iPad app.{{cite web |last=Ludwig |first=Sean |date=February 28, 2012 |title=Seamless brings super simple food ordering to the iPad |url=https://venturebeat.com/2012/02/28/seamless-ipad-app |access-date=October 2, 2013 |website=Venturebeat.com}}

In May 2013, Grubhub and Seamless announced that they were merging, with Seamless representing 58% of the equity and GrubHub representing 42% of the equity of the combined business; the merger was finalized in early August 2013.{{cite news|last=Lazare|first=Lewis|date=August 9, 2013|title=GrubHub and Seamless complete merger|url=http://www.bizjournals.com/chicago/news/2013/08/09/grubhub-and-seamless-complete-merger.html|work=Chicago Business Journal|access-date=November 14, 2016}}

Grubhub went public in April 2014 at $26 per share. During its time as a standalone company, it traded on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".{{cite web|url=http://www.nasdaq.com/markets/ipos/company/grubhub-inc-928619-74745|title=GRUBHUB INC. (GRUB) IPO|website=NASDAQ.com|access-date=May 12, 2016}}

In June 2014, Grubhub began offering delivery for restaurants that did not operate their own delivery service. By 2016, the company was delivering in more than 50 markets across the U.S.{{cite web|url=http://seekingalpha.com/article/3970792-grubhub-grub-matthew-m-maloney-q1-2016-results-earnings-call-transcript|title=GrubHub (GRUB) Matthew M. Maloney on Q1 2016 Results - Earnings Call Transcript|last=Transcripts|first=SA|date=May 3, 2016|website=Seeking Alpha|language=en-US|access-date=May 12, 2016}} In July 2018, Grubhub announced that it had expanded its delivery capabilities to 28 new cities in the US.{{Cite web|url=https://investors.grubhub.com/investors/press-releases/press-release-details/2018/Grubhub-Delivery-Adds-New-Markets-Nationwide/default.aspx|title=Grubhub Delivery Adds New Markets Nationwide|website=investors.grubhub.com|access-date=2019-02-10|archive-date=2020-06-04|archive-url=https://web.archive.org/web/20200604123648/https://investors.grubhub.com/investors/press-releases/press-release-details/2018/Grubhub-Delivery-Adds-New-Markets-Nationwide/default.aspx|url-status=dead}}{{cite news|work=Tribeca Citizen|title= Seen & Heard: Another GrubHub Seamless Scheme|date=April 6, 2016 |url=http://tribecacitizen.com/2016/04/06/seen-heard-another-grubhub-seamless-scheme/}}{{cite news|work=Tribeca Citizen|title=Why Restaurants Hate GrubHub Seamless|date=March 1, 2016|

url=https://tribecacitizen.com/2016/03/01/why-restaurants-hate-grubhub-seamless/}}

Grubhub's UK competitors are Deliveroo and UberEATS. In the U.S. its competitors include Uber Eats, DoorDash, Postmates, and EatStreet.{{cite web|last=Marino|first=Jonathan|url=http://www.businessinsider.com/heres-the-big-stat-grubhubs-new-competitors-covet-2015-2|title=Here's the big stat GrubHub's new competitors covet |publisher=Business Insider|date=2015-02-10|access-date=2017-03-07}}

In February 2020, the company announced the launch of its new Grubhub+ monthly subscription program, which offers free, unlimited food delivery from partner restaurants for a monthly fee.{{Cite web|url=https://www.forbes.com/sites/lanabandoim/2020/02/26/grubhub-launches-new-subscription-program-to-compete-with-other-food-delivery-services/|title=Grubhub Launches New Subscription Program To Compete With Other Food Delivery Services|last=Bandoim|first=Lana|date=February 26, 2020|website=Forbes|language=en|access-date=2020-03-03}}

In 2021, the company announced a partnership with Yandex to add Yandex delivery robots to the Grubhub platform for food deliveries in colleges.{{cite news |title=Russia's Yandex driverless robots to deliver food at U.S. colleges with GrubHub |url=https://www.reuters.com/technology/russias-yandex-driverless-robots-deliver-food-us-colleges-with-grubhub-2021-07-06/ |access-date=16 November 2021 |work=Reuters |date=6 July 2021}}

On May 12, 2020, Uber announced that it was approaching Grubhub with a takeover offer.{{Cite web|last=Hammond|first=Ed|date=2020-05-12|title=Uber Approaches Grubhub With Takeover Offer|url=https://www.bloomberg.com/news/articles/2020-05-12/uber-is-said-to-approach-grubhub-with-takeover-offer|access-date=2020-05-12|website=Bloomberg.com}}{{Cite news|last=Lombardo|first=Cara|date=2020-05-12|title=WSJ News Exclusive {{!}} Uber Technologies Makes Takeover Approach to GrubHub|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/uber-technologies-makes-takeover-approach-to-grubhub-11589296216|access-date=2020-05-12|issn=0099-9660}} However, on June 9, 2020, Just Eat Takeaway announced it would be purchasing Grubhub for $7.3 billion in an all-stock deal.{{Cite news|url=https://www.reuters.com/article/us-grubhub-m-a-just-eat-takeawaay-idUSKBN23H2FB|title=Europe's Just Eat Takeaway to buy Grubhub for $7.3 billion|newspaper=Reuters|last1=Sterling|first1=Toby|last2=Roumeliotis|first2=Greg|date=June 10, 2020|via=www.reuters.com}} The acquisition would create the largest online food delivery service outside of China, and provide Just Eat Takeaway with a base in the U.S. market. North American headquarters would remain in Chicago with Grubhub founder, Matt Maloney, joining the board of directors and heading North American operations.{{Cite news |last=Jimenez |first=Abdel |date=June 10, 2020 |title=European food delivery firm to buy Chicago-based Grubhub in $7.3 billion deal |work=Chicago Tribune |url=https://www.chicagotribune.com/business/ct-biz-grubhub-combination-just-eat-takaway-deal-20200610-7ejhab3qd5e47orrsstuddideq-story.html |access-date=2020-06-11}}

On June 10, 2021, Just Eat Takeaway took operations of Grubhub as Grubhub stockholders approved Transaction with Just Eat Takeaway. The sale was completed on June 15, 2021.{{cite press release |date=June 10, 2021 |url=https://investors.grubhub.com/investors/press-releases/press-release-details/2021/Grubhub-Stockholders-Approve-Transaction-with-Just-Eat-Takeaway.com/default.aspx |title=Grubhub Stockholders Approve Transaction with Just Eat Takeaway.com |publisher=Grubhub |url-status=dead |archive-url=https://web.archive.org/web/20210610145839/https://investors.grubhub.com/investors/press-releases/press-release-details/2021/Grubhub-Stockholders-Approve-Transaction-with-Just-Eat-Takeaway.com/default.aspx |archive-date=June 10, 2021}} As part of this, Grubhub's logo was changed to include the Just Eat Takeaway house.{{cite news |title=Grubhub loses first round in logo fight |url=https://www.chicagobusiness.com/consumer-products/grubhub-home-chef-court-over-logos|work=Crain's Chicago Business |date=12 April 2022}}

In April 2022, Just Eat said that it would consider a full sale of Grubhub after Cat Rock Capital, an activist investor, pressed the company to focus on European markets.{{cite web |url=https://www.reuters.com/business/takeawaycom-shareholder-repeats-call-divest-grubhub-2021-11-10/ |title=Takeaway.com shareholder repeats call to divest Grubhub |first=Toby |last=Sterling |work=Reuters |date=10 November 2021 |archive-url=https://web.archive.org/web/20211110090025/https://www.reuters.com/business/takeawaycom-shareholder-repeats-call-divest-grubhub-2021-11-10/ |archive-date=10 November 2021 |url-status=live}}{{cite news |url=https://www.wsj.com/amp/articles/just-eat-says-grubhub-sale-still-possible-as-shares-slide-11656519735 |title=Just Eat Says Grubhub Sale Still Possible as Shares Slide |date=29 June 2022 |work=The Wall Street Journal |last=Haddon |first=Heather |archive-url=https://archive.today/20220629191819/https://www.wsj.com/amp/articles/just-eat-says-grubhub-sale-still-possible-as-shares-slide-11656519735 |archive-date=29 June 2022}}

In July 2022, Amazon struck a deal with Just Eat to offer Prime customers free Grubhub+ membership for a year. The partnership allows Amazon to take a 2% stake in the company with the option to acquire up to 15% based on performance.{{cite web |url=https://www.cnn.com/2022/07/06/tech/amazon-grubhub-prime-food-delivery/index.html |title=Amazon partners with Grubhub to offer Prime customers meal delivery perks |date=6 July 2022 |work=CNN Business |first=Catherine |last=Thorbecke}} In May 2024, Amazon announced that Grubhub+ would become permanently included with Amazon Prime memberships.{{Cite web |last=Shakir |first=Umar |date=2024-05-30 |title=Amazon Prime now comes with free Grubhub food delivery |url=https://www.theverge.com/2024/5/30/24167678/amazon-prime-grubhub-plus-free-food-delivery |access-date=2024-05-30 |website=The Verge |language=en}}

Throughout 2020, Grubhub released a series of animated television commercials of people ordering food on the app. In January 2021, one of these commercials, called "Delivery Dance", became popular on the internet as a meme, with many people uploading parodies of it. The commercial shows several people dancing after ordering food from Grubhub, set to "Soy Yo" by the Colombian pop band Bomba Estereo. The commercial was panned, as it was seen as too obnoxious.{{Cite web|title=That Annoying Grubhub Commercial Has Become One of the First Big Memes of 2021|url=https://www.distractify.com/p/grubhub-commercial-meme|access-date=2021-02-10|website=Distractify|date=12 January 2021|last=Stein|first=Michelle|language=en-US}} Comparisons were made online between this ad and a similar ad from the grocery store chain Kroger.{{cite news |title=Grubhub Beats Injunction in Trademark Battle With Kroger Co. (1) |url=https://news.bloomberglaw.com/ip-law/grubhub-beats-injunction-in-trademark-battle-with-kroger-co |work=news.bloomberglaw.com |publisher=Bloomberg Law |language=en}}

In February 2018, US Magistrate Judge Jacqueline Scott Corley found that Grubhub correctly classified plaintiff Raef Lawson as an independent contractor and rejected his misclassification claim in the Lawson vs. Grubhub court case.{{cite web |title=In Bellwether Gig Economy Case, Judge Rules Grubhub Driver Is Not an Employee |url=https://www.law.com/therecorder/sites/therecorder/2018/02/08/in-bellwether-gig-economy-case-judge-rules-grubhub-driver-is-not-an-employee/ |website=www.law.com |publisher=Cogan Schneier |access-date=8 February 2018 |ref=51}}

In a 2017 lawsuit, attorney Shannon Liss-Riordan said that the company re-labels words, using euphemisms like "blocks" instead of "shifts", to justify deliberate misclassification of drivers as contractors.{{Cite web|url=https://www.courthousenews.com/theyre-not-employees-grubhub-tells-judge/|title=They're Not Employees, Grubhub Tells a Judge|last=Iovino|first=Nicholas|date=2017-10-31|language=en-US|access-date=2019-06-29}}

The Wallace v. Grubhub Holdings contractor lawsuit alleges that Carmen Wallace and Broderick Bryant and other drivers were misclassified as independent contractors and Grubhub defied wage-and-hour requirements under the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the California Labor Code.{{cite web |title=Delivery Drivers Required to Arbitrate Fair Labor Standards Act Claims Against Grubhub |url=https://www.chicagobusinesslitigationlawyerblog.com/delivery-drivers-required-to-arbitrate-fair-labor-standards-act-claims-against-grubhub/ |website=Chicago Business Litigation Lawyer Blog |date=25 September 2020}}

The plaintiffs in Wallace v. Grubhub claim that the work of these drivers makes them employees rather than independent contractors. Wallace and Bryant argue that drivers work on scheduled shifts, and must work in a certain area. "The drivers as a general matter cannot engage in personal non-work activities during their GrubHub shifts," the complaint states, meaning that they essentially function as employees. They also allege that they do not receive the same benefits that an employee does. Grubhub drivers are allegedly required to pay some of their expenses.{{cite web |title=Seventh Circuit: Key Takeaways from Wallace v. Grubhub |url=https://www.jdsupra.com/legalnews/seventh-circuit-key-takeaways-from-40951/ |website=JD Supra |language=en}} Because of how they are paid, the plaintiffs claim they may often get paid below federal or state minimum wage, even when they work long hours. Many drivers allegedly work more than 40 hours a week but do not receive overtime rates for their work.{{cite news |last1=Dickey |first1=Megan Rose |title=Ex-GrubHub driver testifies on 'ghost orders' and the acceptance rate hustle |url=https://techcrunch.com/2017/09/06/grubhub-ex-driver-lawson-testify/ |work=TechCrunch |date=6 September 2017}}

According to the Grubhub contractor lawsuit, the company violated several FLSA and Illinois laws by failing to pay overtime and failing to pay minimum wage. The plaintiffs filed their class-action Grubhub contractor lawsuit on June 29, 2018, in the U.S. District Court for the Northern District of Illinois.{{Cite web|url=https://topclassactions.com/lawsuit-settlements/lawsuit-news/851439-grubhub-contractor-lawsuit-filed-over-failure-to-pay-proper-wages/|title=GrubHub Contractor Lawsuit Filed Over Failure to Pay Proper Wages|date=2018-07-31|website=Top Class Actions |language=en-US |access-date=2019-06-29}}

Broderick and Carmen filed the lawsuit on behalf of themselves and all others in a similar situation and the case is ongoing.

On November 10, 2016, after the victory of President Donald Trump in the general election, Grubhub President and CEO Matt Maloney sent a company-wide memo to employees saying that he rejected the "nationalist, anti-immigrant and hateful politics of Donald Trump" and "If you do not agree with this statement then please reply to this email with your resignation because you have no place here." The Washington Times reported that Maloney "unleashed a political screed after the Nov. 8 election and said that those who disagree with its anti-Trump views should resign."{{cite news|last=Ernst|first=Douglas|date=November 10, 2016|title=Matt Maloney, Grubhub CEO, tells pro-Trump employees they have 'no place' in company|newspaper=The Washington Times |url=http://www.washingtontimes.com/news/2016/nov/10/matt-maloney-grubhub-ceo-tells-pro-trump-employees|access-date=November 14, 2016}}{{cite news|last1=Graham|first1=Meg|last2=Elahi|first2=Amina|date=November 11, 2016|title=Grubhub faces backlash after CEO's anti-Trump email to employees|newspaper=Chicago Tribune|url=http://www.chicagotribune.com/bluesky/originals/ct-matt-maloney-grubhub-email-resign-bsi-20161110-story.html|access-date=November 14, 2016}}

After a Twitter boycott campaign was initiated, Maloney later claimed his words were "misconstrued", adding "I want to clarify that I did not ask for anyone to resign if they voted for Trump. I would never make such a demand. On the contrary, the message of the email is that we do not tolerate discriminatory activity or hateful commentary in the workplace and that we will stand up for our employees." In a tweet that was later deleted, Maloney added: "To be clear, Grubhub does not tolerate hate and we are proud of all our employees—even those who voted for Trump." By Thursday night, the hashtag #BoycottGrubHub was trending on Twitter.{{cite web|date=November 15, 2016|title=Grubhub alienates Trump voters—time to sell?|url=http://seekingalpha.com/article/4022547-grubhub-ceo-alienates-trump-voters-time-sell |website=Seekingalpha.com}} Following Maloney's statement, on November 11, 2016, the company's shares dropped 5.93%.{{cite web|title=GrubHub Inc. Common Stock (GRUB) Real-Time Stock Quote |url=http://www.nasdaq.com/symbol/grub/real-time|access-date=November 14, 2016|publisher=NASDAQ}}

An August 2019 episode of the podcast Underunderstood reported that Yelp listings for some restaurants provide Grubhub "referral numbers" which, when called instead of the restaurant's phone number itself, facilitate the recording of the calls and can result in the restaurant being charged commission fees, even in some cases when resulting in no order.{{cite web |title=Recorded for Awesomeness |date=6 August 2019 |url=https://underunderstood.com/podcast/episode/yelp-grubhub-dark-pattern/ |publisher=Underunderstood |access-date=19 January 2020}}

In June 2019, reports came out alleging that Grubhub had registered more than 23,000 web domains in restaurants' names without their consent, in what was cast as "an attempt to generate greater commission revenue and prevent restaurants from building their online presences." Grubhub disputed the allegations, insisting that restaurants had explicitly agreed in their contracts with Grubhub to allow web domain purchases and the creation of websites advertising their businesses.{{Cite web|url=https://thecounter.org/grubhub-domain-purchases-thousands-shadow-sites/|title=GrubHub is buying up thousands of restaurant web addresses. That means Mom and Pop can't own their slice of the internet|last=Brown|first=H. Claire|date=2019-06-28|website=The Counter|language=en-US|access-date=2020-04-25}}{{Cite web|url=https://www.latimes.com/business/la-fi-grubhub-cybersquatting-20190702-story.html|title=Facing fury over 'fake websites,' Grubhub says restaurants have it wrong|last=Cutchin|first=James B.|date=2019-07-02|website=Los Angeles Times|language=en-US|access-date=2020-04-25}}

In April 2020, a group of New Yorkers sued DoorDash, GrubHub, Postmates, and Uber Eats, accusing them of using their market power monopolistically by only listing restaurants on their apps if the restaurant owners signed contracts that include clauses that require prices to be the same for dine-in customers as for customers receiving delivery.{{ r | NPR_1 | SJMN_1 | Reut_1 | BB_1 }} The plaintiffs state that this arrangement increases the cost for dine-in customers, as they are required to subsidize the cost of delivery; and that the apps charge “exorbitant” fees, which range from 13% to 40% of revenue, while the average restaurant's profit ranges from 3% to 9% of revenue.{{ r | NPR_1 | SJMN_1 | Reut_1 | BB_1 }} The lawsuit seeks triple damages, including for overcharges, since April 14, 2016, for dine-in and delivery customers in the United States at restaurants using the defendants' delivery apps.{{ r | NPR_1 | SJMN_1 | Reut_1 | BB_1 }} The case is filed in the federal U.S. District Court, Southern District of New York as Davitashvili v GrubHub Inc., 20-cv-3000.{{cite court | litigants=Davitashvili v GrubHub Inc. | volume= | reporter=Link from NPR article | opinion= | date=2020 |url=https://assets.documentcloud.org/documents/6890558/DAVITASHVILI-v-Grubhub-ET-AL.txt }}{{ cite news | url=https://www.npr.org/2020/05/14/856444431/cities-crack-down-on-food-delivery-app-fees-as-restaurants-struggle-to-survive | title=Restaurants Are Desperate — But You May Not Be Helping When You Use Delivery Apps | last=Allyn | first=Bobby | publisher=NPR | date=2020-05-14 | access-date=2020-05-20 | archive-url=https://web.archive.org/web/20200517202103/https://www.npr.org/2020/05/14/856444431/cities-crack-down-on-food-delivery-app-fees-as-restaurants-struggle-to-survive | archive-date=2020-05-17 | url-status=live | quote=Frank points to a clause in the contracts restaurants and the food delivery apps agree to that prohibits owners from charging delivery customers more than people who dine in, even though delivery costs more. 'By not forcing those purchasing on apps to bear the whole amount of the fees, instead of forcing all menu prices to rise together, in-restaurant diners are effectively subsidizing Grubhub's high rates,' said Frank, who argues such an arrangement is anti-competitive and illegal. }}{{ cite news | url=https://www.mercurynews.com/2020/04/14/doordash-uber-eats-grubhub-and-postmates-make-restaurant-meals-cost-more-lawsuit/ | title=DoorDash, Uber Eats, Grubhub and Postmates make restaurant meals cost more: lawsuit—Four firms' rise has 'come at great cost to American society,' suit claims | last=Baron | first=Ethan | newspaper=Mercury News | date=2020-04-14 | access-date=2020-05-19 | archive-url=https://web.archive.org/web/20200420220308/https://www.mercurynews.com/2020/04/14/doordash-uber-eats-grubhub-and-postmates-make-restaurant-meals-cost-more-lawsuit/ | archive-date=2020-04-20 | url-status=live | quote=Each of the firms uses 'monopoly power' to prevent competition, limit consumer choice and force restaurants to agree to illegal contracts that have 'the purpose and effect of fixing prices,' the suit claimed. ... The four companies give restaurants a 'devil's choice' that requires them to keep dine-in prices the same as delivery prices if they want to be on the app-based delivery platforms, the suit claimed. And restaurants must pay commissions to the delivery firms ranging from 13.5% to 40%, the suit alleged. ... Establishments are forced to 'calibrate their prices to the more costly meals served through the delivery apps,' the suit alleged. }}{{ cite news | url=https://www.reuters.com/article/us-health-coronavirus-food-delivery-laws-idUSKCN21V2C1 | title=Grubhub, DoorDash, Postmates, Uber Eats are sued over restaurant prices amid pandemic | last=Stempel | first=Jonathon |publisher=Reuters | date=2020-04-13 | access-date=2020-05-19 | archive-url=https://web.archive.org/web/20200417021535/https://www.reuters.com/article/us-health-coronavirus-food-delivery-laws-idUSKCN21V2C1 | archive-date=2020-04-17 | url-status=live | quote=GrubHub, DoorDash, Postmates and Uber Eats were sued on Monday for allegedly exploiting their dominance in restaurant meal deliveries to impose fees that consumers ultimately bear through higher menu prices, including during the coronavirus pandemic. In a proposed class action filed in Manhattan federal court, three consumers said the defendants violated U.S. antitrust law by requiring that restaurants charge delivery customers and dine-in customers the same price while imposing 'exorbitant' fees of 10% to 40% of revenue to process delivery orders. The consumers, all from New York, said this sticks restaurants with a 'devil's choice' of charging everyone higher prices as a condition of using the defendants' services. }}{{ cite news | url=https://www.bloomberg.com/news/articles/2020-04-13/grubhub-doordash-among-delivery-services-facing-antitrust-suit | title=GrubHub, Doordash Accused in Suit of Pushing Prices Higher | last=Dolmetsch | first=Chris |publisher=Bloomberg News | date=2020-04-13 | access-date=2020-05-19 | archive-url=https://web.archive.org/web/20200419120108/https://www.bloomberg.com/news/articles/2020-04-13/grubhub-doordash-among-delivery-services-facing-antitrust-suit | archive-date=2020-04-19 | url-status=live | quote=The New York customers, who seek class-action status, say the delivery services charge 'exorbitant fees' that range from 13% to 40% of revenue, while the average restaurant's profit ranges from 3% to 9% of revenue, making delivery meals more expensive for eateries. 'Restaurants could offer consumers lower prices for direct sales because direct consumers are more profitable,' the plaintiffs said. 'This is particularly true of dine-in consumers, who purchase drinks and additional items, tip staff, and generate goodwill.'}} Although a number of preliminary documents in the case have now been filed, a trial date has not yet been set.{{cite web |url= https://www.courtlistener.com/docket/17065112/davitashvili-v-grubhub-inc/ |title= Court Listener | date=2020-07-28 | access-date=2020-07-28 }}

In October 2020, a group of restaurants launched a class-action suit against Grubhub for having included them in its listings without having asked permission (or, in some cases, despite permission having been denied), because this caused "damage to (the restaurants') reputations, loss of control over their customers’ dining experiences, loss of control over their online presence, and reduced consumer demand for their services"; plaintiffs specifically cited that Grubhub would list obsolete menus with invalid prices and/or unavailable options (leading to customer complaints) and that Grubhub refused to delist restaurants upon request.{{cite web |url=https://www.eater.com/21537215/restaurants-use-third-party-delivery-service-grubhub-for-listing-businesses-without-permission |title=Grubhub Hit With Lawsuit for Listing Restaurants Without Permission |first=Jaye |last=Saxena |website=Eater |date=October 28, 2020 |access-date=October 30, 2020}} This practice was banned in California in 2021 for its abuse of restaurants.{{Cite web |last=Bitker |first=Janelle |date=2021-01-06 |title=It's now illegal for delivery apps to list restaurants without their permission |url=https://www.sfchronicle.com/food/article/It-s-now-illegal-for-delivery-apps-to-list-15850491.php |access-date=2022-05-19 |website=San Francisco Chronicle |language=en-US}}

On May 17, 2022, Grubhub offered a promotional code offering free lunch for those ordering in New York City. Grubhub's system and local restaurants were immediately overwhelmed after fielding nearly 6,000 orders per minute.{{Cite web |last=Schiffman |first=Zach |date=2022-05-18 |title=Grubhub Offered New York 'Free Lunch.' Now New York Hates Grubhub. |url=https://www.grubstreet.com/2022/05/grubhub-free-lunch-debacle.html |access-date=2022-05-19 |website=Grub Street |language=en-us}} Grubhub released a statement the same day stating they let restaurant workers know in advance, but the claim was immediately disputed by workers.{{Cite web |last=Weekman |first=Kelsey |date=May 17, 2022 |title=Grubhub Was Getting 6,000 Orders A Minute During Its Promo Today That Left Restaurant Workers Stressed And Customers Hangry |url=https://www.buzzfeednews.com/article/kelseyweekman/grubhub-free-lunch-nyc-promo-chaos |access-date=2022-05-19 |website=BuzzFeed News |language=en}}{{Cite web |last=Fortney |first=Luke |date=2022-05-18 |title=Is Anyone Surprised Grubhub's 'Free' Lunch Program Was a Disaster for Restaurant Workers? |url=https://ny.eater.com/2022/5/18/23123167/grubhub-free-lunch-discount-2022 |access-date=2022-05-19 |website=Eater NY |language=en}} Multiple outlets regarded the promotion as a "disaster," with restaurants unable to keep up with the demand and insufficient delivery workers available to pick up orders, resulting in wasted food and customers without their meals.{{Cite web |title=Grubhub's Free Lunch Was a Fucking Disaster |url=https://thetakeout.com/why-grubhub-free-lunch-in-nyc-promo-was-a-disaster-1848942200 |access-date=2022-05-19 |website=The Takeout |last=Stone |first=Lillian |date=18 May 2022 |language=en-us}}{{Cite web |last=Baio |first=Ariana |date=2022-05-18 |title=Grubhub offered people free lunch but it turned into a disaster |url=https://www.indy100.com/news/grubhub-nyc-free-lunch |access-date=2022-05-19 |website=indy100 |language=en}} Restaurants were left facing angry customers, refunded orders, and inability to reach Grubhub's customer service.

In November 2022, Pennsylvania Attorney General Josh Shapiro sued Grubhub, claiming that the service failed to properly disclose that prices for food ordered through GrubHub could be higher than the same item ordered at a restaurant. The investigation by the attorney general's office also found that Grubhub would route web traffic from users to microsites that host a restaurant’s menu as well as third-party websites, such as Yelp or Menupages.com.{{Cite web|url=https://www.attorneygeneral.gov/wp-content/uploads/2022/11/2022-11-21-Grubhub-Inc___CIE-_filed__2891443.pdf|title=Commonwealth of Pennsylvania v. Grubhub Holdings, Inc. and Grubhub, Inc.}} Later that same month, a settlement was announced whereby Gruhub would be required to pay $125,000 to several Pennsylvania food banks and be more transparent about its pricing.{{Cite web |last=McCarthy |first=Erin |date=November 22, 2022 |title=Grubhub says it'll be more transparent about how it marks up food prices at local restaurants |url=https://www.inquirer.com/business/grubhub-fees-pricing-settlement-philadelphia-20221121.html |access-date=December 8, 2022 |website=Philadelphia Inquirer |language=en}} As part of the settlement,{{Cite web |title=AG Josh Shapiro Announces Grubhub to Provide New In-App Transparency Disclosures on its Prices |url=https://www.attorneygeneral.gov/taking-action/ag-josh-shapiro-announces-grubhub-to-provide-new-in-app-transparency-disclosures-on-its-prices/ |access-date=2022-12-08 |website=Pennsylvania Office of Attorney General |language=en}} GrubHub will be required to add price disclosures to their menu and checkout-pages.{{Cite web |last=Fuller |first=Kaylee |date=2022-11-21 |title=Pennsylvania AG: Grubhub to provide new in-app price transparency |url=https://www.abc27.com/news/top-stories/ag-grubhub-to-provide-new-in-app-price-transparency/ |access-date=2022-12-08 |website=ABC27 |language=en-US}}{{cite news |last1=Stempel |first1=Jonathan |title=Grubhub, Uber Eats, Postmates must face diners' lawsuit over U.S. restaurant prices |url=https://www.reuters.com/legal/government/grubhub-uber-eats-postmates-must-face-diners-lawsuit-over-us-restaurant-prices-2022-03-30/#:~:text=NEW%20YORK%2C%20March%2030%20(Reuters,during%20the%20COVID%2D19%20pandemic. |work=Reuters |date=31 March 2022 |language=en}}

In October 2023, local media stations KTLA and KABC-TV reported that a restaurant owner in Long Beach, California, had caught a Grubhub delivery driver eating from and then repackaging an order. The restaurateur was able to intercept the tampered meal after it had already been delivered. The restaurateur wants Grubhub to provide tamper-proof seals, as the current stickers are easily removed "like a piece of Velcro."{{cite web |last1=Fenoglio |first1=John |title=Local restaurant in Long Beach speaks out after delivery driver eats customer's food |website=YouTube |date=14 October 2023 |url=https://www.youtube.com/watch?v=abeDM96E3sY |language=en}} Grubhub declined a request for an interview following the incident,{{cite news |last1=Hayes |first1=Rob |title=Grubhub driver appears to eat customer's food after pickup from SoCal restaurant |url=https://abc7.com/long-beach-grubhub-driver-ate-customers-food-caught-on-video/13910590/ |publisher=ABC7 Los Angeles |date=14 October 2023 |language=en}} and released a statement:

We have no tolerance for misconduct on our platform. The vast majority of our orders are completed without incident or complaint, and when things don't go as planned, we work hard to make things right. Upon hearing of this situation, we took immediate action and suspended the driver from our platform. We've also reached out to the diner to address and help resolve the situation.{{cite news |last1=Conybeare |first1=Will |last2=Fenoglio |first2=John |title=Grubhub driver seen on video eating customer's food |url=https://ktla.com/news/local-news/local-restaurant-speaks-out-after-grubhub-driver-eats-customers-food/ |publisher=KTLA |date=15 October 2023}}

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