NEW YORK (Reuters) – In a letter to investors before its share price plunged last week, online food delivery service GrubHub Inc (GRUB.N) cited its profitable ties with small and medium-sized restaurants, saying they generate 80% of the orders on its platform.
“This is a highly lucrative relationship for both parties,” the letter said.
But some restaurants think otherwise and have begun pushing back against what they see as the relationship’s unfair distribution of profits.
A growing number of small and mid-sized food chains want to reduce ordering and delivery commissions as high as 30% charged by the big four third-party platforms – GrubHub, Uber Technologies Inc’s (UBER.N) Uber Eats, DoorDash Inc and Postmates Inc, industry sources say.
“They hate the relationship and they are getting raked over the coals,” said Ben Gaddis, president of T3, a digital marketing and tech consultant to restaurants such as Pizza Hut and Schlotzsky’s. “The smaller they are, the more…
Source news reuters.com, click here to read the full news.
