DoorDash overtook GrubHub as the top online food delivery company in the U.S. amid accusations from restaurants that DoorDash didn’t get permission to post their menus or deliver their food to customers.
DoorDash topped monthly meal-delivery sales in May, according to market researcher Second Measure, while facing accusations from restaurants that it was never given permission to post their menus or deliver their food to customers.
- DoorDash was accused of handling orders for restaurants including NYPD Pizza, a family-owned business, and In-n-Out Burger, which ended up suing DoorDash to get off the delivery company’s platform, without permission.
- “DoorDash makes money by ‘reselling’ our food at higher prices,” Kevin Leidecker, NYPD Pizza’s owner, said. “They also charge more for delivery. They took our menu, posted it on DoorDash, and the customer is oblivious to the fact we have no relationship with DoorDash at all.”
- Employing an army of deliverers called “dashers,” DoorDash charges a service fee without a minimum order amount. Rival GrubHub’s sends orders to restaurants, which deliver the meals.
- DoorDash, which has grabbed 32% of U.S. consumers’ meal delivery sales, has helped boost sales at The Cheesecake Factory and Chipotle.
- The Karma Take: While pursuing questionable delivery practices and angering some eateries, DoorDash has risen to become the top food delivery company in the nation.