The city of Chicago is suing Grubhub and DoorDash alleging the delivery services “engaged in deceptive practices to prey on its affiliated restaurants.”
NBC Chicago reports the lawsuits claim that both DoorDash and Grubhub “advertise order and delivery services from unaffiliated restaurants without their consent, leaving restaurants to repair reputational damage and resolve consumer complaints.”
According to the City of Chicago, both companies advertise delivery services for restaurants without their agreement, hurting the businesses’ reputation when customers are unhappy about the cost or service.
City investigators also found that both companies charge higher prices for items than restaurants set on their own menus and charge more in total fees than initially disclosed to customers.
“It is deeply concerning and unfortunate that these companies broke the law during these incredibly difficult times, using unfair and deceptive tactics to take advantage of restaurants and consumers who were struggling to stay afloat,” Mayor Lori Lightfoot said in a statement.
Meanwhile, a spokesperson for Grubhub says the allegations are “baseless” and “categorically wrong.”
“Every single allegation is categorically wrong and we will aggressively defend our business practices,” Grubhub told NBC Chicago. “We look forward to responding in court and are confident we will prevail.”
DoorDash, meanwhile, seems blindsided by the move: “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,” a spokesperson told the NBC affiliate. “This lawsuit will cost taxpayers and deliver nothing.”