Yelp/Grubhub Restaurant Delivery Steering – Class Action Investigation
Chimicles Schwartz Kriner & Donaldson-Smith LLP is investigating a potential class action lawsuit on behalf of restaurants that advertise on the Yelp app. The Yelp app offers customers of restaurants two options when they want to contact the restaurant: to call for “Delivery or Takeout” or for “General Questions.” It has been reported that the “Delivery of Takeout” option routes customers to Yelp’s partner, Grubhub. It has further been reported that Yelp is steering restaurant customers to Grubhub pursuant in exchange for a “referral fee” of between 15 percent and 20 percent of the order total.
Many restaurant owners may not realize that Grubhub numbers are appearing on the consumer-facing Yelp app. If you operate a restaurant and believe you may have been charged a fee by Grubhub or Yelp due to these practices, please contact us to discuss this investigation.