California Grubhub Users Allege Hidden Fees, Harm to Restaurants

Food delivery platform Grubhub Inc. exploited consumers’ reduced willingness to leave their homes during the Covid-19 pandemic by aggressively marketing a flat, low-cost delivery fee while imposing hidden charges on users, a suit filed in Los Angeles alleges.

The platform adds between 15% and 20% to the cost of food ordered for delivery, and adds an additional “service fee” on top of the flat delivery fee it advertises, the suit says.

The additional charges make their public statements to consumers false and deceives them into making online food purchases they otherwise wouldn’t make, the complaint alleges.

A company representative disputed ...