Grubhub, Uber and Postmates lose bid to dismiss lawsuit
Grubhub, Postmates and Uber will still face legal action over allegations of food delivery charges driving up restaurant prices, even for people not using the apps, according to a Bloomberg report. a federal judge who refused to dismiss the case.
The diners’ proposed class action lawsuit was filed in April 2020 just as the restaurants were set to close and offer delivery service options.
High company fees and non-compete clauses prevented restaurants from offering discounts to customers who ordered directly from them, according to the lawsuit.
The delivery companies disputed this, saying the plaintiffs failed to prove that ordering directly from a restaurant replaced ordering the same meal on their apps.
U.S. District Judge Lewis A. Kaplan of Manhattan said the lawsuit plausibly showed that restaurants could not “avoid doing business” and were prevented from lowering prices in direct markets to get sales, so they had no choice but to raise prices.
The report notes that Grubhub was disappointed and “will continue to defend itself”, as well as the “services we offer to restaurants and restaurants”.
Read more: DoorDash Steps Up White-Label Efforts in ResTech’s Race to “Digital Wholeness”
PYMNTS wrote that DoorDash has taken steps to expand its reach, announcing a partnership with website builder platform Wix to integrate with the delivery company’s white-label fulfillment platform.
This will allow restaurants to offer delivery, fulfill orders through the aggregator’s driver network, and DoorDash it will expand reach to new customers.
“We are thrilled to partner with Wix to provide a solution for restaurants of all sizes to offer seamless delivery through their own channels through our Drive platform,” said Casey North, vice president of DoorDash Drive, in a statement. “We hope Wix Restaurants users can expand their reach to even more customers, and we’re proud to support these small businesses by enabling delivery through their own channels.”