# Grubhubs profits plunge 96% as it grapples with fake-fee outcry.



## observer (Dec 11, 2014)

New York Post : Grubhub's profits plunge 96 percent as it grapples with fake-fee outcry.
https://nypost.com/2019/07/30/grubh...-percent-as-it-grapples-with-fake-fee-outcry/


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## Seamus (Jun 21, 2018)

Always such bright and cheery news about the delivery apps.


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## observer (Dec 11, 2014)

Seamus said:


> Always such bright and cheery news about the delivery apps.


See my next thread. :biggrin:


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## Invisible (Jun 15, 2018)

Seamus said:


> Always such bright and cheery news about the delivery apps.


Don't you mean all the apps, not just delivery?


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## Launchpad McQuack (Jan 8, 2019)

Hmmmm.......one thing that I have oft thought to myself whilst motoring about for GrubHub is, "I don't understand how this company is profitable." I guess the answer to that thought is, "They're not.........or not as profitable as I have been led to believe."


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## Seamus (Jun 21, 2018)

Launchpad McQuack said:


> Hmmmm.......one thing that I have oft thought to myself whilst motoring about for GrubHub is, "I don't understand how this company is profitable." I guess the answer to that thought is, "They're not.........or not as profitable as I have been led to believe."


It's hard to imagine how any of them can ever be profitable. We deliver $9 worth of food for $9. Once on a 3x boost I got $27 for delivering a milkshake! I think they are losing money to try to get consumers behavior to adapt to wanting to order a lot of home delivery and put the competition out of business. I guess they think once they have eliminated the competition and gotten consumers addicted they can pay drivers less and charge customers delivery fees they'll be willing to pay.


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## Jay Dean (Apr 3, 2015)

All of these companies are just using investment money so they can have jobs...nobody is really making money as there is no way to make money lol. Have to think, the people working in these places have never even had to even change a tire in life, or hold a "real" job that required a skill, they are simply living in lala land and think it will last. I give it 5 years before the whole world isn't stupid enough to give these nimwits money to continue with the scams or far fetched dreams of others supporting their ideas that do NOT turn a profit.


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## tohunt4me (Nov 23, 2015)

Jay Dean said:


> All of these companies are just using investment money so they can have jobs...nobody is really making money as there is no way to make money lol. Have to think, the people working in these places have never even had to even change a tire in life, or hold a "real" job that required a skill, they are simply living in lala land and think it will last. I give it 5 years before the whole world isn't stupid enough to give these nimwits money to continue with the scams or far fetched dreams of others supporting their ideas that do NOT turn a profit.


96 % overnight value DROP !


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## peteyvavs (Nov 18, 2015)

Uber eats tried to get all the pizza chains and independents to use their delivery service, a couple of the independent chains tried this and lost a sizable portion of their business because the radius was expanded and deliveries took more then 60 minutes very often. 
UE drivers didn’t get the tips that regular pizza delivery drivers received, stores lost customers and UE lost because drivers cancelled when pinged for these deliveries.


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## Grubhubflub (Jun 16, 2018)

Hasn't GrubHub been around longer than five years?


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## Launchpad McQuack (Jan 8, 2019)

Grubhubflub said:


> Hasn't GrubHub been around longer than five years?


Yes, but it went public about five years ago.


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## observer (Dec 11, 2014)

peteyvavs said:


> Uber eats tried to get all the pizza chains and independents to use their delivery service, a couple of the independent chains tried this and lost a sizable portion of their business because the radius was expanded and deliveries took more then 60 minutes very often.
> UE drivers didn't get the tips that regular pizza delivery drivers received, stores lost customers and UE lost because drivers cancelled when pinged for these deliveries.


We eat pizza at home 2-3 times a week and noticed the new websites. I kept thinking that the prices seemed higher than when I walked in.

I stopped ordering pizza delivery from my favorite place because the prices just seemed outrageous.

I wonder how much business this pizzeria lost because of this diversion of customers, with just me it was 50-100 bux a week.


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## Goongpad77 (Dec 6, 2017)

Launchpad McQuack said:


> Hmmmm.......one thing that I have oft thought to myself whilst motoring about for GrubHub is, "I don't understand how this company is profitable." I guess the answer to that thought is, "They're not.........or not as profitable as I have been led to believe."


 GrubSHLUB takes 20-30% of every order and charges the customer then pays peanuts.. how are they not making money? They are in almost every major city coast to coast.. I heard UE charges upwards of 35%

The companies don't know how to manage money.. meanwhile small businesses are taking the hit thinking they need to be on the apps..

Restaurants run on thin margins as it is..


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## Woohaa (Jan 15, 2017)

Goongpad77 said:


> small businesses are taking the hit thinking they need to be on the apps..
> 
> Restaurants run on thin margins as it is..


^^^^^ This.

Read articles on this topic and some indie restaurant owners weren't sure if they were making money off the food app sales or not.


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## dlearl476 (Oct 3, 2017)

Back when I first started driving UE a Mcds mgr told me that they thought it was great because UE was 20% of their business. Once they realized that they were basically giving free food to UE customers because how much Uber eats took in fees, thats when they stopped having orders sitting on the counter ready to go when you arrived. I haven’t done Uber eats for a while but sometimes now it’s hard to even get them to help you


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