Posted on 05/19/2022 4:54:08 PM PDT by nickcarraway
Frustrated customers, devastated restaurants, and more: What you need to know about this week’s food delivery catastrophe
The offer was simple: Using the code “FREELUNCH,” Grubhub customers in the New York metropolitan area could take $15 off orders placed on Tuesday between 11 a.m. and 2 p.m. (They were still required to pay taxes, fees, and optional tips.) Naturally, a discounted lunch during a period of nationwide inflation and rising food costs was an enticing prospect; as BuzzFeed reported, order volume peaked at 6,000 per minute during those three hours. But almost immediately, it turned into a nightmare: All over Twitter and TikTok, hangry diners railed against Grubhub for “scamming” and “gaslighting” them into ordering a salad at 1 p.m. that arrived at 6 p.m.—or didn’t show up at all.
“Absolutely fucking over the entire NYC service industry today,” one Twitter user replied to a Grubhub tweet. “You guys messed up big-time. We have over 30 cold orders not being picked up by drivers and our phones are off the hook with angry customers.” The user, Renny Conti, was allegedly working front of house at a Brooklyn restaurant and witnessed firsthand the chaos that ensued.
Some restaurants were aware of the discount, and according to the New York Post, didn’t think much of it since so many delivery companies have been offering discounts. “We gave advance notice to all restaurants in our network,” a Grubhub representative told Bon Appétit. “We also increased driver incentives to help support demand, and our drivers generally made 2–3 times more than usual during the promotion.” But many restaurateurs said they didn’t know anything about it. The sudden deluge of orders crashed the app and forced many restaurants to close and cancel online deliveries.
“It would’ve been nice if $GRUB gave restaurants a heads-up, similar to how they send messages about checking hours for upcoming holidays,” tweeted Barb Leung, who works in marketing at New York City’s Nom Wah restaurant group. “Literally didn’t know about this until scrolling through Twitter last night.”
So, how did this all happen? A confluence of alleged miscommunication, general delivery app tech glitches, and more, explained below.
Why did Grubhub launch the promo? Underlying all of yesterday’s pandemonium is the fact that delivery apps are in hot water. They did record-busting business during the pandemic, when more people were ordering meals to eat at home. But as customers are increasingly dining out again, apps like DoorDash, Uber Eats, and Grubhub are struggling with sales. (Even during the height of the COVID-19-induced delivery spike, these cost-intensive behemoths weren’t turning a profit.) Their stocks have plunged since, and Grubhub, which is currently for sale, supposedly suffered the biggest losses, according to NBC.
Tuesday’s free lunch campaign was a ploy by Grubhub to get users back on the app. And they aren’t the only ones clambering to hold on to their customer base. In February, a system-wide crash befuddled a slew of DoorDash drivers and angered users whose orders got lost and waylaid. The same thing happened again last week. And after years dominating the delivery industry, DoorDash finally has a bunch of competitors all dipping into the same customer and restaurant pool.
Why were customers upset? In a tale as old as time, Grubhub tried to lure back customers with a classic move: a coupon for free food. The $15 discount, marketed as “free lunch,” also comes at a time when inflation and rising prices are a major stressor. The coupon’s redemptions were six times higher than previous campaigns the brand had run. Grubhub got people hyped—and many customers who tried to use the discount code said that the company didn’t properly follow through.
“Order canceled after a 2 hour wait,” Twitter user Jonah Sahn replied to Grubhub, “and now every restaurant has ‘paused’ ordering. It was a nice thought, but it wasn’t thought out.” Another customer was in the 3,630th place in Grubhub’s customer service queue after waiting more than an hour for food. Some did foresee the chaos and ordered early. “Was on Grubhub at 11 a.m, with my food in the cart like I was waiting on a drop,” tweeted one user.
Even when orders were messed up, though, the lion’s share of social media rage seemed to be directed at the delivery app, not the restaurants. One user shared a screenshot of their text thread with Grubhub’s automated bot. After failing to deliver their feedback, the customer signed off: “I love the restaurant. I hate Grubhub.”
Who bears the brunt of the fallout? Whether it’s this week’s Grubhub drama or last week’s DoorDash outage, “the thesis is the same,” tweeted Kristen Hawley, who writes about restaurant technology in her Substack newsletter, “Expedite.” “Driving up demand via a third-party platform can unintentionally harm restaurants, whether that’s labor, unsustainable volume, or just reputation.”
While some restaurants have been able to stay afloat through the pandemic, thanks in part due to delivery apps, their survival came at a cost. The detrimental impact that delivery business has on workers and drivers—a frantic pace, low wages, few workplace protections, and the relentless pressure to meet tight deadlines—is well-documented. The long-term effects can be dire too. According to a 2019 marketing study, 62% of customers who have a poor delivery experience co-blame both the restaurant and the app, though it’s the former that suffers most from the lack of repeat business.
This is just the latest high-profile incident regarding the fraying relationship between delivery apps and restaurants. For years, restaurants have complained about high fees and commission rates, which can be up to 30% on each order. Various cities enacted caps on delivery fees; DoorDash and Grubhub have sued in some cases to get rid of the caps. The landscape of food delivery is still evolving, especially as lawmakers pay greater attention to them and more competition pops up. But figuring out how to make delivery equally beneficial for all parties seems crucial to the success of both restaurants and apps, especially in the likely scenario that online ordering continues to be a part of dining culture.
Until then, someone is always going to get squeezed in the name of profit—and right now, it’s the restaurants, service workers, and delivery drivers. There is no such thing, it turns out, as a free lunch.
So, how can you support local restaurants?
Call in for pickup and order directly from restaurant websites. That’s the most beneficial option for food businesses, because it bypasses the fees associated with paying apps and drivers. Likewise, seek out smaller, community-based delivery services with less aggressive charges wherever possible. And if you need to use a legacy app like Grubhub or DoorDash, be sure to tip your drivers at least 20%, ideally—and in cash.
Perfect NYC liberals…PO’d that the free food didn’t show up fast enough. It’s good training for when they get their EBC cards.
“But almost immediately, it turned into a nightmare“
Bad dreams aren’t noted for the good parts. Screw up society and society will screw you along with everyone and everything else.
I don’t use delivery driver apps. I order carryout and always pick it up myself. It’s cheaper too.
For the workers ordering lunch for the office ... how about making your own lunch and bringing it to the office. Leftovers are your friend.
Save a bunch of money that way, and your lunch is always at your fingertips. No wait, no tips, no $8, $10, $12, etc... for a ham sandwich, chips, and a soda.
Yep, that’s what I learned from W. C. Fields “There is no such thing as a free Lunch”.
Plus “Never give a sucker an even break”
I don’t live in NYC, but I do still regularly use Doodash and Grubhub, along with Uber Eats.
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