18 ms·
The "marketing service" just means being listed at all on GrubHub itself. So restaurant owners are agreeing to a big fee to get customers from the GrubHub websi
by jazzkingrt 6y ago
The "marketing service" just means being listed at all on GrubHub itself. So restaurant owners are agreeing to a big fee to get customers from the GrubHub website and app.
But it sounds like they often don't know that they are also being made to pay a fee for their own customers who are simply looking up the phone number.
GrubHub isn't obviously adding any value there, these customers could just as well have pulled the phone number from Google Maps of the restaurant's own website.
I think GrubHub could be acting incorrectly in few ways:
1. Restaurants don't appear to be well informed of the cost. Deceiving your customer (eg by sneaking clauses into the contract) doesn't feel right.
2. GrubHub could be deceiving the restaurant's customers, who may be making a sincere effort to order from the restaurant directly.
3. In some local markets; GrubHub might have a kind of monopoly power. I think are a lot more constraints on how these kinds of businesses can dictate terms to other business: https://en.wikipedia.org/wiki/Vertical_restraints https://en.wikipedia.org/wiki/Vertical_restraints