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Business March 21, 2022 2 mins read

Grubhub Facing Lawsuit from Washington D.C.

Business ı By Gabrielle Seunagal

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USA Herald

In today's world, it's become all too common for people to use food delivery apps.

As more people are on the go, apps like DoorDash, UberEats, Postmates, Grubhub, etc., are busier than ever. The rise in demand for delivery services such as these also provides more job opportunities in the gig economy.

However, apps like Grubhub are certainly not without certain areas of controversy. For instance, some people claim these delivery services don't pay their workers enough money.

Then, there are others who say drivers for delivery services deserve employee benefits, rather than just categorizations as independent contractors.

However, in the case of Grubhub, the controversy runs a little deeper. As a matter of fact, the delivery service currently faces a lawsuit from Washington D.C.

Why is Washington D.C. suing Grubhub?

In Washington D.C.'s lawsuit against Grubhub, the city accuses the delivery service of intentionally misleading customers. D.C. says this is taking place in the form of promotions and prices of food during coronavirus.

Specifically, the nation's capital city alleges that Grubhub knowingly hid information regarding extra fees that may be more expensive than the restaurant's actual prices.

The District of Columbia maintains the purpose of its lawsuit is for Grubhub to cease the aforementioned "unlawful practices" against customers. Likewise, the nation's capital urged for the food delivery service to provide greater levels of transparency to its customers.

Grubhub's reaction to the lawsuit

In a public statement, Grubhub noted its prior work with D.C. officials and described the lawsuit as a disappointment.

Furthermore, the company went on to say that it remains in compliance with the laws of the city.

After Grubhub noted it would defend itself in a court of law, the company also acknowledged many of the practices referenced by D.C. in the lawsuit are not in effect today.

Finally, the food delivery service committed to making certain changes to its business practices. Per Grubhub, these changes will involve checkout procedures, service charges, and more.

Washington D.C.'s lawsuit against Grubhub does not mark the first time this company has faced legal action, either. It remains to be seen how this all plays out in court.

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Gabrielle Seunagal

Gabrielle Seunagal is a full-time freelance writer, editor, and voice actor, who worked with USA Herald from June 2017 to November 2024. She is passionate about fitness, travel, and combating human rights abuses like human trafficking and child marriage.

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