Is Grubhub scamming your restaurant business?Comments Off on Is Grubhub scamming your restaurant business?
Grubhub, a popular mobile ordering and delivery platform worth at least 5 billion dollars, is in hot water (again) after it was discovered that Grubhub is allegedly listing restaurants on the platform without their permission and offering delivery from Ghost Kitchens that don’t even represent the companies on their website.
Pim Techamuanvivit, owner of Kin Khao in San Francisco, wrote in a Twitter thread this past weekend, that her restaurant has been added to Grubhub and Seamless without her permission or any kind of agreement. She does not offer delivery or take-out, yet orders were fulfilled by another business posing as Kin Khao.
It isn’t the first time something like this happens or accusations are made. It was discovered last year that Grubhub was taking control of business listings through a partnership with platforms like Yelp and putting fake phone numbers on listings.
These numbers led to a Grubhub controlled number that then generated orders and charged restaurants for sending customers that were simply trying to order from the restaurant. Restaurants were shocked when they discovered they were paying Grubhub for a service they never agreed to.
Grubhub went as far as generating fake domains that seemed to be the official website of restaurants with menus that led to Grubhub for business orders. Over 23,000 domains were discovered by journalists at New Food Economy. In a normal world, there would be consequences for these actions.
Grubhub was basically forced by New York City to start changing the policy after threats were made and a class-action lawsuit was started against them by restaurateurs they charged for these “services” that is now asking for 5 million dollars.
Yet this continues:
Of course, this isn’t limited to just New York City or San Francisco. Once this story made its way around the internet business owners in other cities also began also crying foul. The story made it over to Pittsburgh, Pennsylvania and it seems this may be deeply run into the food ecosystem.
Which begs the question, is Grubhub scamming your restaurant business? Is Seamless? It’s probably best to look up your own listings to make sure.
Rumors are swirling online that Grubhub is for-sale. Whether that explains this rampant behavior against restaurants or not, one thing is clear: restaurant owners have a right to control of their businesses and this is wrong plain and simple.
Restaurants have a failure rate of 60% in their first year and 80% in their first five years. Foot traffic is falling and costs are going up. Isn’t it hard enough without someone taking control of your restaurant listings, phone number, and website presence?