Grubhub CEO Calls Out Delivery Rivals For Price Gouging; Stock Drops 14% On Earnings

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Grubhub's CEO singled out Postmates and DoorDash for charging consumers extra in service fees on the heels of a lukewarm earnings report that pummeled the company’s stock by bizcarson

Grubhub CEO Matt Maloney, on the heels of a lukewarm earnings report that pummeled the company’s stock, criticized rivals DoorDash and Postmates for high service fees, extra costs hidden in menu markups and subscription programs he described as"bogus."

For now, customers seem to swallow the service fees in favor of the"novelty" of delivery, Maloney contends, but he argues that is likely to change when customers"wisen up" to the difference in cost structures between companies. Often, menu items vary in price between platforms depending on whether the company has a partnership with the restaurant. In a report released Tuesday by D. A.

Despite growing competition from companies like DoorDash, Grubhub increased its active diners 30% year-over-year to 20.3 million and clocked $1.5 billion in gross food sales. When asked about potential M&A in a conference call with analysts and journalists, Maloney said he wasn't thinking about any mergers or acquisitions specifically for his company.

 

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Grubhub CEO Calls Out Delivery Rivals For Price Gouging; Stock Drops 14% On EarningsGrubhub's CEO singled out Postmates and DoorDash for charging consumers extra in service fees. meanwhile Grubhub charges me an $8 'delivery fee' after my first couple orders. Grubhub is the scummiest by a mile I hope he kills postmates. They treat drivers so bad my friends say. Pay is the worst.
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