GrubHub cancels $100M in merchant fees as billions of people stay home and order more


Thousands of American restaurants struggling to stay in business amid the nation’s growing novel coronavirus pandemic have one less thing to worry about today, thanks to Grubhub.

Grubhub founder and CEO Matt Maloney announced Friday that his company is temporarily suspending the collection of up to $100 million in commission fees from local restaurants for whom it delivers across the nation as they deal with the coronavirus’s economic onslaught.

Grubhub provides delivery service to more than 350,000 restaurants throughout the United States, from local bistros to major chains such as McDonald’s, Wendy’s and Subway. The delivery service provider said locally-owned restaurants comprise more than 80% of its business.


Grubhub is also using its “Donate the Change” program to raise funds for programs aiding local restaurants and delivery drivers affected by drops in business due to coronavirus.

The program typically raises up to $1 million a month from customers using the Grubhub app or website who round up their payment totals to the nearest dollar. That additional money goes to select charities supported by the company.

Food delivery services like Grubhub, Uber Eats, Door Dash, and Postmates have all seen their business rise significantly in recent weeks, according to Lightfoot.

Grubhub said it hasn’t set a time limit yet on its fee suspension.



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