Why 640,000 Grubhub customers and drivers are getting paid
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Illustration: Maura Losch/Axios
Nearly 650,000 Grubhub customers and drivers are getting payments from a $24 million settlement reached in 2024.
Why it matters: The Chicago-based food delivery company was ordered to change some business practices in response to allegations that it charged hidden fees and misled drivers.
Driving the news: The Federal Trade Commission started sending checks this month to 640,038 affected customers and drivers totaling more than $23.8 million, after Illinois Attorney General Kwame Raoul and the FTC settled with Grubhub in 2024.
What they're saying: "Grubhub is committed to transparency so that every single day diners, restaurants and drivers can make well-informed choices to do business with us. While we categorically deny the allegations made by the FTC—many of which are wrong, misleading or no longer applicable to our business—we believe settling this matter was in Grubhub's best interest and allows us to move forward," a spokesperson told Axios in a statement.
Catch up quick: Raoul and the FTC started investigating the company after receiving complaints from customers and drivers about hidden fees.
- The AG and FTC allege that, dating back to at least 2019, Grubhub added nearly 325,000 restaurants to the app without the businesses' permission, forcing customers to order from the delivery company rather than from the restaurant directly.
- Diners, the complaint alleges, faced higher fees and ordering problems, which in turn damaged the businesses' reputations.
- Ad campaigns for drivers in Chicago promised $26/hour, but the median pay was actually closer to $11/hour, the investigation found.
Flashback: The AG and FTC secured a nearly $25 million settlement with Grubhub Inc. in 2024.
Context: Wonder acquired Grubhub from Just Eat Takeaway.com for $650 million in November 2024.
Zoom out: The company, started in Chicago in 2004, has settled similar complaints from customers and drivers in California.
What's next: Check recipients should cash them within 90 days, as indicated on the check. PayPal recipients should redeem their payments within 30 days.
- Amounts that recipients receive vary, and the FTC is not making that number public.
- The FTC's FAQ page has more details.