Chicago has long struggled with third-party delivery apps. Even before the pandemic, these delivery services were a controversial topic. Last November, Chicago tried to stop apps like UberEats, DoorDash and Grubhub of restaurants that reduce prices by putting a 15% limit on restaurant shipping costs. (The cap it finally expired.) DoorDash immediately retaliated by slapping $ 1.50 “Chicago Fare” in each order. Now, Chicago has had enough: the city is suing both DoorDash and Grubhub.
The city announced the dress through the office of Mayor Lori Lightfoot. The ad explains that the lawsuit is based on “deceptive and unfair business practices of services that harm restaurants and mislead consumers.” Lightfoot writes:
As we watched a global pandemic that clogged businesses and drove people inside, defendants ’food delivery service applications became a major way for people to feed themselves and their families, in addition. to support local restaurants. It is deeply troubling and unfortunate that these companies broke the law in these incredibly difficult times, using unfair and deceptive tactics to take advantage of restaurants and consumers struggling to stay afloat.
The lawsuit argues that DoorDash and Grubhub used nasty tactics to get business, such as advertising restaurants with which they were not even collaborating and hiding additional expenses in the purchase process, raising the cost of delivery to six times. The lawsuit also argues that the services hid the fact that food prices within the app were often much higher of what is advertised on the restaurant menus.
The lawsuit also includes several company-specific complaints. For example, Grubhub was known for posting fake phone numbers, yet charging commissions even if a phone call did not result in a legitimate food order. According to the lawsuit, Grubhub also created websites that looked like real restaurant websites, but were redirected to Grubhub. The company is also being accused of forcing restaurants to cover the cost of the application pandemic campaign to “save restaurants.” In addition, the lawsuit alleges that Grubhub raped last year 15% emergency cap in restaurant commissions.
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According to the city announcement, DoorDash is accused of fooling customers into thinking the tips went directly to delivery drivers. (Actually, they were being used to subsidize DoorDash’s normal delivery payment.) Oh, and the “Chicago Fee” retaliation we mentioned earlier? He didn’t actually go to the city of Chicago. He went to DoorDash.
Has been a messy fight Bye now. Running a restaurant is not a lucrative job and, for those who consider it a love job, these delivery services have caused nothing but inconvenience and a black hole for money. However, according to the city’s lawsuit, this is the first police activity against food delivery companies in the United States, so this could bode well for future restaurant protections. In the meantime, do you want to help defeat the apps? The best you can do is order directly from the restaurant (check their number carefully) and avoid these apps altogether.