GrubHub Holdings Inc.

12/17/2024 | Press release | Distributed by Public on 12/17/2024 11:14

Grubhub reaches settlement with the FTC

Grubhub's platform was built from a desire to help independent restaurants capitalize on the digital economy and provide drivers with flexible opportunities to earn. Today, we enable hundreds of thousands of merchants and delivery partners to leverage e-commerce to meet their business goals, and customers place tens of millions of orders from small businesses nationwide on Grubhub each year.

Since our founding in 2004, Grubhub has continuously innovated and evolved to best serve our customers, restaurants and drivers. Over the last few years, we've engaged cooperatively with the Federal Trade Commission (FTC) as they reviewed our business and specific offerings that are prevalent in our industry. We respect the role the FTC plays in protecting consumers and promoting competition and appreciate the ongoing dialogue we've had with them.

At Grubhub, we're 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 While we categorically deny the allegations made by the FTC, many of which are wrong, misleading or no longer applicable to our business, we believe settling this matter is in the best interest of Grubhub and allows us to move forward.

As part of the settlement, Grubhub agreed to pay a suspended judgment of $25 million and will make changes to its platform to make it even easier for diners to understand the fees we charge, how we advertise earnings potential for delivery partners, and how we communicate about Grubhub+, among other updates.

Complying with all laws and regulations where we operate is something we have always taken very seriously, and we hold ourselves to the highest standards of ethics and integrity.