The City of Chicago is suing both DoorDash and Grubhub. The U.S. city alleged the companies of deceiving customers.
According to the lawsuits, owners of restaurants in the City of Chicago that the platforms advertise delivery services for their businesses without them knowing. Furthermore, the company provides lower prices to customers outside of the platform without the consent of restaurants.
Furthermore, Chicago officials claimed that DoorDash and Grubhub use “bait-and-switch” to bring more customers with low delivery fees and then charge additional ones once the order is placed.
“This lawsuit is baseless,” a DoorDash spokesperson said in an email. “It is a waste of taxpayer resources, and Chicagoans should be outraged. DoorDash has stood with the City of Chicago throughout the pandemic, waiving fees for restaurants, providing $500,000 in direct grants, creating strong earning opportunities, and delivering food and other necessities to communities in need. This lawsuit will cost taxpayers and deliver nothing.”