As small businesses prepare for a decrease in business as a result of the coronavirus, Grubhub is dropping commission payments for independent restaurants in cities across the country.
Grubhub announced Friday that it plans to temporarily suspend the collection of up to $100 million in commission fees that independent restaurants pay to Grubhub. The Chicago food delivery company made the announcement in collaboration with mayors from Chicago, New York City, San Francisco, Boston and Portland.
Grubhub also announced it has created a fund that will allow diners to donate to charitable organizations that support restaurants and delivery drivers impacted by COVID-19. The program lets diners round up the change from every order and donate it to the Grubhub Community Relief Fund. Donations are matched by the company, and Grubhub says it has been raising more than $1 million per month through the program.
"Independent restaurants are the lifeblood of our cities and feed our communities," Grubhub CEO Matt Maloney said in a statement. "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."
Grubub estimates that dine-in traffic at restaurants is expected to slow up to 75 percent over the next few weeks, and many of those companies will have to rely on increased delivery orders to generate sales.
"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," Chicago Mayor Lori E. Lightfoot said in a statement. "That is why we applaud corporate leaders like Grubhub who are stepping up with practical measures to support small businesses and their employees."
