Grubhub to Pay $23.8 Million to More Than 640,000 Drivers and Customers After FTC Settlement
More than 640,000 Grubhub drivers and customers are set to receive payments from a $23.8 million settlement tied to allegations that the food delivery company used deceptive and unfair business practices.
The Federal Trade Commission announced that it is sending payments to 640,038 eligible consumers. Most people will receive checks by mail, while some will get their money through PayPal.
The settlement follows a lawsuit filed in December 2024 by the FTC and the Illinois Attorney General. The complaint accused Grubhub of misleading delivery drivers about how much they could earn, limiting some customers’ access to their accounts and funds, and adding restaurants to its platform without permission.
One of the central claims involved Grubhub’s earnings promises to drivers. Regulators alleged that the company advertised potential pay in a way that gave workers an inaccurate impression of what they could realistically make. For gig workers relying on delivery apps for income, those claims were a major part of the case.
The lawsuit also raised concerns about how Grubhub handled customer accounts. According to regulators, some users were restricted from accessing their accounts or money, and the company did not provide a fair process for challenging those restrictions.
Another major issue involved restaurant listings. The complaint alleged that Grubhub listed as many as 325,000 restaurants that had no official relationship with the company. Regulators claimed these listings made the platform appear larger and more widely available than it actually was.
In some cases, restaurants allegedly asked to be removed from Grubhub but were not taken off the platform. Instead, the company was accused of using the situation to pressure certain businesses into paid partnerships.
As part of the settlement, Grubhub must make several changes to its business practices. The company is required to be more accurate when advertising driver earnings, provide customers with a way to dispute account restrictions that block access to funds, and obtain consent from restaurants before listing them on its delivery platform.
The $23.8 million payout adds to growing scrutiny around food delivery apps and how they treat drivers, customers, and restaurant partners. Grubhub recently faced another major settlement involving delivery drivers in California, where a federal judge approved a nearly $25 million agreement covering about 60,000 workers.
Grubhub is not alone in facing regulatory and legal pressure. Other major delivery platforms, including DoorDash and Uber Eats, have also dealt with criticism over driver pay, customer fees, and restaurant relationships.
For affected Grubhub drivers and customers, the FTC’s latest payment distribution marks a significant step in resolving the allegations. It also sends a broader message to the gig economy: delivery platforms must be transparent about earnings, customer access, and restaurant partnerships.
