Grubhub Commits $30M To Support Restaurants During COVID-19

Chicago-headquartered delivery unicorn Grubhub said it will spend $30 million to help support more than 100,000 independent restaurants and regional franchises as the coronavirus pandemic changes everyday life, the company announced on Thursday (April 2).

Each restaurant on the Grubhub platform that opts into the Supper for Support program will get $250 to use as promotional dollars for a deal offering customers $10 off orders of at least $30. The funding will continue through April.

“We anticipate this funding from Grubhub will help generate at least $100 million in restaurant sales,” the company said in a statement. “To date, participating restaurants in Grubhub promotions during the crisis have seen up to 30 percent increased sales.”

Grubhub is also collaborating with Verizon Business to deliver meals to frontline healthcare workers in New York City. Grubhub is coordinating with six local hospitals and numerous New York City restaurants to provide a complimentary meal each day to healthcare workers. Grubhub is donating its services to oversee the ordering and delivery operation.

As a way to make sure restaurants stay open while dining rooms are closed, Grubhub is coordinating with government officials during the pandemic. Matt Maloney, Grubhub co-founder and chief executive officer, also reached out to leaders in Washington, D.C. asking them to support a $325 billion aid package that had been recommended by the National Restaurant Association earlier in March.

Grubhub was founded by Maloney, Jason Finger and Mike Evans in 2004 and filed an initial public offering in 2014. It has raised a total of $284.1 million in more than eight funding rounds. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, Tapingo, Eat24, AllMenus and MenuPages.

The delivery giant had originally come under fire when it first offered the Support for Supper on March 27. The fine print of the agreement specifies that restaurants still have to pay Grubhub its full commission on each order — 15 to 30 percent — based on the purchase total before the $10 discount is applied. 

John Collins, a Grubhub spokesman, disputed the allegation that the company is taking advantage of restaurant owners.