So, apparently, Grubhub will still make restaurants pay back the suspended commission fees
Grubhub has gone from hero to zero, real quick.
UPDATE 3/17/20: According to Gizmodo, a spokesperson has told them that restaurants will still be required to pay these commission fees back. We’ve updated the headline and subhead of this piece to reflect the news.
As more locations in the US and around the world begin taking quarantine measures in the wake of the coronavirus, businesses everywhere are feeling the effects. This is especially true in the restaurant industry, where people are forgoing nights out on the town in an effort to flatten the curve.
Announced today, Grubhub, a food delivery service, will waive fees for independent restaurants around the country. This news comes after discussions with mayors of major cities, including Boston, Chicago, Portland, New York City, and San Francisco.
Technically, there is a limit on the amount of forgiveness, with Grubhub “temporarily suspending collection of up to $100 million in commission payments from impacted independent restaurants nationwide.” Those fees can be up to 30% for some restaurants, according to CNBC.
“Independent restaurants are the lifeblood of our cities and feed our communities. They have been amazing long-term partners for us, and we wanted to help them in their time of need. Our business is their business — so this was an easy decision for us to make,” says Matt Maloney, Grubhub Founder and CEO.
In addition to the elimination of commission fees, the company has also created a fund within its “Donate the Change” program that will allow proceeds to go “charitable organizations that support restaurants and drivers impacted by the COVID-19 health crisis.”
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