Business

Chicago sues DoorDash and Grubhub for alleged shady business tactics

The town of Chicago states Grubhub and DoorDash engage in sketchy small business tactics.


GrubHub

Chicago is ticked off at DoorDash and Grubhub. On Friday, the metropolis submitted lawsuits versus the two meal shipping solutions. Brought by the city’s performing Small business Affairs and Shopper Defense Commissioner Kenneth Meyer, the filings accuse the organizations of deceptive and unfair company practices.

The alleged misconduct is certain to every outfit. In the case of Grubhub, the assistance allegedly spoofed cafe internet websites and cell phone figures both to demand “routing” expenses or to siphon site visitors from legit web-sites, in accordance to a launch from the city. 

DoorDash is named out for allegedly pocketing consumer strategies intended for restaurant shipping and delivery motorists. The company also imposed a deceptive “Chicago fee” that was promoted as a donation to the town but really went straight to DoorDash, in accordance to the release. 

In reaction, a DoorDash agent told CNET the lawsuit is baseless. “It is a waste of taxpayer sources, and Chicagoans must be outraged,” they explained. “DoorDash has stood with the Town of Chicago in the course of the pandemic, waiving charges for restaurants [and providing] $500,000 in direct grants.”

Previous year, DoorDash settled a lawsuit with Washington, DC, over its tipping methods for $2.5 million.

Grubhub’s response was similarly combative. “We are deeply upset by Mayor Lightfoot’s final decision to file this baseless lawsuit,” a firm spokesperson mentioned. “Every single allegation is categorically mistaken and we will aggressively defend our small business practices.”