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Report: Grubhub vs DoorDash

Executive snapshot

Market leader: DoorDash (≈67% US share, 2025). Grubhub is smaller but still significant, historically stronger in certain urban pockets.
Consumer costs: both have subscription options (DashPass vs Grubhub+). Both have faced criticism and enforcement actions for opaque or "drip" pricing and hidden fees.
Restaurants: DoorDash emphasizes scale, partnerships, and tools; Grubhub has faced major legal penalties for listing restaurants without consent.
Drivers (couriers): pay model disputes, tip handling, and classification issues have affected both; DoorDash has made large settlements over tip handling.
Notable legal/regulatory issues: Grubhub settled with the FTC and Illinois AG for deceptive practices (~$25M). DoorDash faced state actions over tip policies and fees and settled large driver-tip related suits.

The debate: two voices

The Proponent (Why DoorDash often wins)

DoorDash emerges as the dominant, growth-focused platform. Its arguments are:

Scale and coverage: DoorDash partners with over 550,000 restaurants and operates across thousands of U.S. cities and internationally, giving consumers choice and merchants reach. (DoorDash corporate announcements)
Subscription value: DashPass (≈$9.99/month) meaningfully reduces delivery costs for frequent users and has driven higher retention and order frequency. Evidence: DashPass growth to 22M+ members and influence on revenue/MAU growth in 2024–2025.
Product expansion: DoorDash has aggressively expanded into grocery, alcohol, and retail delivery, including large partnerships (Kroger, ALDI, Ahold Delhaize) and innovations like robot deliveries and SNAP/EBT acceptance in some programs.
Merchant services: analytics, merchant tools, and partnerships that claim to grow restaurant sales and simplify logistics; DoorDash reports merchants earned nearly $50B globally in 2023 and 87% said DoorDash helped them reach new customers.

Representative excerpt (DoorDash claim): "DashPass members enjoy unlimited $0 delivery fees and reduced service fees on eligible orders" — DoorDash investor materials and press releases (example: DoorDash DashPass product pages).

The Critic (What both companies have broken — and where Grubhub stumbles)

Critics focus on transparency failures, unauthorized listings, and worker cost-shifting. Key points:

Fee opacity and drip pricing: Both platforms have been accused of advertising low prices then adding mandatory fees at checkout. The City of Chicago, multiple state AGs, and the FTC have pursued enforcement.
Unauthorized restaurant listings: Grubhub in particular was found to have added hundreds of thousands of unaffiliated restaurants, resulting in consumer confusion and legal action. The FTC and Illinois AG alleged that Grubhub added restaurants without consent and hid fees; Grubhub settled for about $25M in December 2024.
Tip and driver-pay controversies: DoorDash settled with New York AG for $16.75M over tip handling; critics argue platform tipping and base-pay systems obfuscate true driver earnings and enable the company to subsidize pay with tips.

Representative excerpt (FTC/AG finding): "Grubhub 'hid fees until the last minute, misled Grubhub+ subscribers to believe they can avoid fees, and blocked some customers from using their gift card balances'" — FTC complaint and press release (Dec 2024). [https://www.ftc.gov/news-events/news/press-releases/2024/12/ftc-illinois-attorney-general-take-action-against-grubhub-harming-diners-workers-small-businesses?utm_source=openai]

Where they agree (and why that matters)

Both platforms materially increased market access for restaurants and consumers but created new friction: higher final prices for some consumers, operational and reputational risk for restaurants (wrong listings, cancellations), and contentious gig-worker economics.
Regulatory pressure is shaping operating practices: fee caps and settlements in New York, multi-state investigations into drip pricing, and local laws (e.g., Nevada fines for unauthorized listings) are forcing platform changes.

Evidence and case studies (selected)

Grubhub settlements and unauthorized listings: FTC/Illinois AG complaint details how Grubhub added up to 325,000 unaffiliated restaurants and used opaque fee presentation that misled diners; Grubhub agreed to pay roughly $25M to settle these claims. Source: FTC complaint and Reuters coverage. (https://www.ftc.gov/system/files/ftc_gov/pdf/2024-12-17-GrubhubComplaint.pdf, https://www.reuters.com/legal/grubhub-pay-25-million-misleading-customers-restaurants-drivers-2024-12-17/)
DoorDash market dominance and expansion: DoorDash reported strong growth, DashPass membership expansion (22M+), and strategic grocery/retail partnerships including Kroger and Ahold Delhaize. DoorDash also pursued acquisitions (Wolt, Deliveroo) to expand internationally. (DoorDash investor site; Reuters; corporate press releases.)
Tip and driver-pay settlements: DoorDash settled a New York enforcement action for $16.75M related to tip handling and driver pay disclosures. (Reuters: "doordash-pay-1675-mln-settle-ny-lawsuit-over-drivers-tips-2025-02-24")
Local enforcement examples: Chicago sued both companies for deceptive practices; LA County and others sued over bait-and-switch fees; Nevada passed new penalties for unauthorized listings ($500/day). These show regulatory variety and growing enforcement. (AP, Axios, LA Mag, local AG filings.)

Direct quotes (selected)

"Grubhub hid fees until the last minute...leading consumers to believe that the 'Delivery fee' was the only charge" — FTC complaint against Grubhub (Dec 2024). (https://www.ftc.gov/system/files/ftc_gov/pdf/2024-12-17-GrubhubComplaint.pdf)
"DoorDash 'used customer tips to subsidize the wages it guaranteed to delivery workers'" — Chicago suit and related reporting on tipping practices (AP, Reuters coverage).

Practical comparison (for decision-making)

If you are a consumer

Choose DoorDash if you value selection, suburb/rural coverage, and subscription benefits (DashPass). Expect the broadest merchant selection and frequent promotional discounts.
Consider Grubhub if you have strong local restaurant preferences tied to markets where Grubhub historically retained relationships; but be alert for potential menu inaccuracies and check pricing carefully.

If you are a restaurant

DoorDash: offers scale, analytics, and marketplace visibility; but expect marketplace fees and negotiation on economics. Its partnerships and integrations can drive higher volume.
Grubhub: historically focused on restaurant relationships, but recent legal findings about unauthorized listings may push you to monitor and control your presence more aggressively. Consider contract terms carefully.

If you are a courier (driver)

Both platforms offer flexible work but have faced disputes over pay, tip transparency, and deactivation practices. DoorDash’s scale may offer more opportunities; both have been subject to legal challenges regarding pay and tips.

The tension summed up

DoorDash: scale, product expansion, and subscription-led growth versus regulatory scrutiny over fees and tips. Grubhub: focused restaurant relationships and competition but damaged by opaque listings and deceptive fee practices.

Where to read deeper

Throughout this report I’ve woven sources and excerpts. For deeper focused follow-ups, consider dedicated reports on these questions:

Conclusion

Both platforms transformed food access but introduced new costs and risks. DoorDash is the safer bet for coverage and innovation; Grubhub remains relevant but must rebuild trust after regulatory actions. For consumers, read final checkout carefully. For restaurants, assert control over listings. For couriers, track pay disclosures and follow legal developments.

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