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Grubhub says its contract allowed it to create fake restaurant websites
Grubhub CEO Matt Maloney has responded to reports that his company creates fake websites for its restaurant partners, claiming that, according to its contract agreements, these businesses have signed away permission for Grubhub to engage in the marketing tactic on their behalf. According to a partial Grubhub contract obtained by the Los Angeles Times, a provision states that Grubhub "may create, maintain and operate a microsite ("MS") and obtain the URL for such MS on restaurant's behalf."
Grubhub provided The Verge with a similar snippet. Grubhub charges varying tiers of commission fees[pdf], the highest being "marketing commission" at 20-plus percent. The contract does not explicitly specify whether these microsites are considered "marketing" or what exactly these microsites would look like. Crucially, the contract does not specify whether Grubhub microsites would use proprietary restaurant photos, logos, or domain names that sound similar to / compete with the business's actual site. (Disclosure: my parents own a restaurant business that is listed on Grubhub / Seamless.)
In New Food Economy's report last Friday, restaurant owners say they "never gave [Grubhub] permission" to create these microsites and say the company is intercepting customer's direct orders in an effort to charge high commission fees. It is, however, possible that this fine print was overlooked upon contract agreement.
(Score: 3, Informative) by MostCynical on Thursday July 04 2019, @06:41PM (2 children)
Grubhub is just another aggregator.
Many tourist areas have Business associations that tun similar pages, but don't take a slice of transactions, just act as a marketing tool.
Grubhub, menulog, and many others trade on people's inability to use the web and their laziness - both of potential customers and the restaurant owners.
Grubhub just found a new angle to exploit.
"I guess once you start doubting, there's no end to it." -Batou, Ghost in the Shell: Stand Alone Complex
(Score: 1, Informative) by Anonymous Coward on Thursday July 04 2019, @07:10PM (1 child)
Grubhub also offers delivery services where some random Joe goes and picks up your order and then brings it to you.
(Score: 0) by Anonymous Coward on Friday July 05 2019, @01:44AM
Restaurants around here offer delivery directly--either phone in your order, or submit with a web form on the restaurant website. No need to get any 3rd parties like Grubhub involved. Note that the delivery service may be a different kind of 3rd party, there is a local outfit with drivers that serve a number of restaurants, but I think the most common delivery (pizza) is done by drivers working directly for pizzerias.
Can't remember the last time I paid for delivery, the food arrives sooner and is fresher if I pick up myself.
Maybe some day I'll be housebound and delivery will be a useful service?