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GrubHub faces potential class action lawsuit related to restaurant list



GrubHub faces a potential class action lawsuit after being sued by two restaurants because the digital food delivery company allegedly added its business premises to its services without permission.

The complaint was filed by Antonia’s in Hillsboro, North Carolina and the farmer̵

7;s wife in Sebastopol, California-on behalf of 150,000 non-partner restaurants that have been added to GrubHub since 2019.

These restaurants filed a lawsuit in Chicago federal court on Monday.

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The plaintiff’s lawyer, Gibbs Law Firm, stated on its website: “Unauthorized inclusion of restaurants, including the restaurant’s name and logo, on its website, Grubbs confuses consumers and harms consumers. The restaurant’s reputation and business operations.”

The lawsuit also claimed that when someone ordered a delivery from a non-cooperative restaurant on GrubHub, the company asked its driver to place an order directly with the restaurant and pretended to be the customer to pick up the food.

GrubHub was sued by two restaurants for including its information on its platform without permission. (IStock)

GrubHub told FOX Business that the company did not comment on the pending lawsuit.

DOORDASH has established a partnership with the San Francisco brand and only provides home delivery restaurants

GrubHub is not the only food delivery company that includes non-cooperative restaurants in its app. In order to keep up with competitors DoorDash and Postmates, GrubHub began this practice.

Stock code Safety continued change Variety%
Grub GRUBHUB INC 74.76 -0.73 -0.97%

However, these companies are also facing legal proceedings for posting non-partner restaurant information on their platforms.

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DoorDash was sued last month for allegedly mislabeling the information of a St. Louis-based restaurant, claiming that the restaurant was closed or too far away to be delivered when customers tried to order from the store.

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According to “Restaurant Diving” reports, In-N-Out also sued DoorDash in 2015 for using the restaurant chain’s name and logo without permission.

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Some states are taking action. Starting in January, after Governor Gavin Newsom (Gavin Newsom) signed the Fair Food Delivery Act into law in September, delivery apps will no longer be allowed in non-partner restaurants in California.

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