Did Grubhub help during the Covid-19 pandemic?

Yes!

RATING: +5
  1. Grubhub has created a fund that will enable proceeds from its Donate the Change program to go toward charitable organisations (GrubHub)
  2. They are also matching donations made (GrubHub)
  3. Grubhub’s driver support pays drivers unable to work due to contracting Covid-19 (GrubHub)
  4. Started no-contact delivery (USAToday)
  5. They are deferring $100 million worth of commissions that it typically charges to independent restaurants (USAToday)
  6. Verizon is feeding first responders with the help of Grubhub which is dealing with the orders and deliveries (Globe News Wire)
  • Grubhub’s $10 off promo forces restaurants to front the discount costs while being charged full commission (The Verge)

We have had feedback that Grubhub’s $10 promo is an optional opt-in for restaraunts, and therefore should not be considered negative.

However, the source article outlines why it is problematic and could be self-serving for Grubhub: the comission Grubhub takes comes pre-discount, so Grubhub makes the same profit from companies with a discount as those without a discount. However, participating restaurants have to take on board the costs. And restaurants that don’t take part will be less likely to receive orders, almost encouraging restaraunts to take the costs at no cost to Grubhub.

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