Yum Brands, Parent Company of Taco Bell, Is Suing Grubhub

In 2018, Yum Brands spent $200 million for 3 percent stake in Grubhub, which included a contract stating Grubhub would give preferable pricing and service to Yum Brands restaurants, like Taco Bell and KFC. Now, Yum Brands hasclaiming Grubhub terminated the contract, and implemented a new pricing structure that’ll result in customers paying 40% more in delivery fees.

“Grubhub’s improper efforts to rid itself of a deal it no longer wanted and to line its pockets will cause enormous harm to consumers at a time when they can least afford it,” Yum Brands claims in the suit,. Yum Brands also said it only reached out to other delivery services because of the pandemic, which “increased the importance, for consumers and small-business restaurant owners alike, of reliable and accessible delivery across every part of the country.

Third-party delivery services have been frantically trying to corner the market, as delivery has never been more popular . Yesterday,it had been acquired by Just Eat Takeaway, a Dutch delivery company, despite previously having been in talks with Uber for a merger. Delivery services have also come under fire for exorbitant fees, like the ones Yum Brands says Grubhub is now implementing.

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