Reuters - Taco Bell, a subsidiary of Fastfood Yum! Brand accused Grubhub on Thursday of violating a distribution contract just days after Just Eat Takeaway agreed to buy Grubhub for $ 7.3 billion .
Yum! The Taco Bell-controlled brand invested about $ 200 million in the Grubhub food delivery app in 2018, with Grubhub agreeing to be a food delivery partner for Taco Bell and KFC stores across the United States.
But the relationship between the two companies began to crack after Yum! Brand has expanded its partnership with two other Grubhub rivals, Uber Eats and Postmates, according to a lawsuit filed in a New York City court.
A Grubhub spokesman said: "We strongly deny the allegations and we will defend ourselves against this split." He added, "This situation is very unfortunate for other restaurants under the Yum! Franchise. "Brands that are making millions are at risk, especially in an already competitive environment."
Anyway, the food shop under Yum's Franchise! The brand still has to continue to pay Grubhub a full shipping cost of 3.05% + $ 0.30 per transaction, although those stores pay a 0% commission to Grubhub for marketing and distribution, according to Same lawsuit.
Grubhub will also be able to get 17% of a customer's dinner fee paid if they (Yum! Brand's franchise restaurant) raise the price on the menu or charge a fee to increase the cost.
The distribution deal requires Grubhub to pay a $ 50 million royalties to Yum! Brand if Grubhub is actually bought by Just Eat Takeaway.
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