CHICAGO, March 13, 2020 /PRNewswire/ -- In collaboration
with the mayors of large cities across the United States who are on the front lines
of the COVID-19 response efforts, Grubhub today announced it is
temporarily suspending collection of up to $100 million in commission payments from impacted
independent restaurants nationwide.
Grubhub's initiative will provide immediate and substantial cash
flow relief to qualified independent restaurants --
restaurants that make up the majority of Grubhub's 350,000+
restaurant community and drive more than 80 percent of the
company's orders.
Matt Maloney, Grubhub Founder and
CEO said: "Independent restaurants are the lifeblood of our cities
and feed our communities. They have been amazing long-term partners
for us, and we wanted to help them in their time of need. Our
business is their business -- so this was an easy decision for us
to make."
Grubhub has also created a fund that will enable proceeds from
its Donate the Change program to go toward charitable
organizations that support restaurants and drivers impacted by the
COVID-19 health crisis. The program will allow diners to round up
the change from every order and donate it to the Grubhub Community
Relief Fund -- with donations from Grubhub+ (and Seamless+) members
matched by the company. Grubhub has been raising more than
$1 million dollars per month through
Donate the Change.
Grubhub will work with local city officials to identify the
organizations that can utilize the funds and to consider other
support programs during the pandemic.
"The City of Chicago is deeply
concerned about the risk COVID-19 is placing on the health of our
residents and communities, as well as the impact it's having on our
working families and neighborhood economies and restaurants," said
Chicago Mayor Lori E. Lightfoot. "That is why we applaud
corporate leaders like Grubhub who are stepping up with practical
measures to support small businesses and their employees. Now more
than ever, we must work together to ensure hardworking Chicagoans
receive the support they need to thrive while also staying safe,
secure, and healthy."
In Chicago, where Grubhub was
founded in 2004 and is headquartered today, there are more than
10,000 restaurants on the platform, and thousands of drivers
bringing delicious food from these restaurants to hungry diners.
This relief fund will provide support for food industry workers,
which are anticipated to become among some of the most impacted by
the economic losses due to coronavirus and social distancing
practices. This includes residents at small, neighborhood-based
businesses like Chicago's Home of
Chicken & Waffles, based in Bronzeville.
As dine-in traffic is expected to slow up to 75 percent over the
next few weeks, restaurants will rely on pickup and delivery orders
to stay in business. "We have seen revenue decrease in the past
week as a direct result of our customers staying home," said
Darnell Johnson, owner of
Chicago's Home of Chicken &
Waffles. "Grubhub has helped us generate more delivery and takeout
orders as our customers' dining habits have changed. This has
helped us continue serving our loyal customers and our employees
can continue living a sustainable lifestyle."
"Banding together during hard times, putting people over profit,
and supporting our local businesses is a model we should all
follow, and I thank Grubhub for leading the way," said New York City Mayor Bill de Blasio.
"Restaurants are a pillar of the San
Francisco small business economy and so important to the
culture of this city," said Joaquin
Torres, Director of San
Francisco's Office of Economic and Workforce Development.
"We are committed to doing everything in our power to support them
in this time of crisis, but if we want to come through this public
health emergency intact, we'll need more private sector partners to
follow Grubhub's lead, do the right thing and invest locally to
mitigate this crisis."
These initiatives follow a series of measures taken by Grubhub
to keep restaurants, diners, and drivers safe during the outbreak –
including contact-free delivery and health and safety guidance to
drivers, restaurants and diners. Additionally, Grubhub offers
pickup from the largest restaurant network in the country, which
helps individuals who might feel safer acquiring food on their
own.
About Grubhub
Grubhub (NYSE: GRUB) is a leading online and mobile food-ordering
and delivery marketplace with the largest and most comprehensive
network of restaurant partners, as well as more than 22 million
active diners. Dedicated to connecting diners with the food they
love from their favorite local restaurants, Grubhub elevates food
ordering through innovative restaurant technology, easy-to-use
platforms and an improved delivery experience. Grubhub features
over 350,000 restaurants and is proud to partner with more than
165,000 of these restaurants in over 3,200 U.S. cities and
London. The Grubhub portfolio of
brands includes Grubhub, Seamless, LevelUp, AllMenus and
MenuPages.
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SOURCE Grubhub