Chicago sues DoorDash, Grubhub for allegedly deceiving customers
Summary
The City of Chicago filed two sweeping lawsuits against DoorDash and Grubhub for allegedly deceiving customers and using unfair business practices. The city also claims both platforms use a "bait-and-switch" method to attract customers with low delivery fees, only to charge additional ones when they are about to place their order. A DoorDash spokesperson said the company "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." "Every single allegation is categorically wrong and we will aggressively defend our business practices," a Grubhub spokesperson said in a statement. The city also claimed Grubhub made "imposter websites" for restaurants to unexpectedly lure customers to its own platform.