Grubhub's $100 million lifeline to restaurants has strings attached - Business Insider

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Grubuhb's $100 million lifeline to restaurants hit by coronavirus slowdowns has some major strings attached

Additionally, the fees are only suspended for the duration of the "relief period," which Grubhub said it anticipates will last "no later than March 29, 2020," and it could begin collecting the delayed payments as early as April 13. While Grubhub has the ability to extend those dates, the current relief period is set to end far ahead of when many local governments and public health agencies expect businesses to be able to fully re-open.

"To increase cash flow and help restaurants pay their employees, we are deferring our own revenue from these local businesses – regardless if they're long-standing partners or new to our platform – for the time being. We are also working closely with government officials to ensure that kitchens stay open for pickup and delivery even when dine-in capacity must be shut down," a Grubhub spokesperson told Business Insider.

"To many of us in the restaurant industry, the Grubhub announcement rang out as a hollow PR move," New York-based beverage consultant Estelle Bossy told Eater, adding: "Grubhub profits by taking a 15 to 30 percent commission from each delivery, so why not really help out and reduce the commission itself?"

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