GrubHub Accused of Building Fake Restaurant Websites to Increase Commission
One thing you don't play about is food and GrubHub is about to feel the heat real soon after being accused of building fake restaurant websites and buying over 23,000 domains of restaurant names.
According to a report from New Food Economy, the food delivery service Grubhub has been creating websites for its client restaurants, with those restaurants seeing an increased commission fee as a result.
Restaurant owners who provided testimonies to New Food Economy say that Grubhub's shadow websites negatively impacted the institutions they were mimicking. By having these sites, Grubhub had customers believe they were ordering directly from the restaurant, which was true in the sense that customers still got their food, but also it would come with a commission fee cost to the eatery because the sites weren't officially affiliated with them.
Additionally, phone numbers listed on Grubhub's website will lead to the restaurants, but technology utilized by Grubhub would allegedly flag the calls as an order, which also led to a commission fee.