CHANDLER, AZ (3TV/CBS 5) -- Colton Grubb is a proud small business owner. Two years ago, he opened Grubstak in Chandler. Now, a year into the pandemic, he is struggling to stay afloat. Grubb says food delivery services fees are actually hurting business.

"Every time a customer orders food, let's say it is $10, 30% the restaurant gives Uber," said Grubb.

His biggest issue is with Uber Eats' marketing push. The company recently launched an "Eat Local" campaign encouraging people to support local restaurants through the app. However, Grubb said while the company ran promotions for customers, like no delivery fees, it still charged restaurants.

"Literally nothing has been done for local restaurants in terms of minimizing, decreasing fees for a restaurant," said Grubb.

Meanwhile, Uber Eats says 82% of restaurant operators say the company has been crucial to business during COVID-19. The company also says it donated $4.5 million to a restaurant relief fund.

Still, people like Grubb want others to know businesses like his are barely breaking even when people order through delivery service apps. He said if people want to support local restaurants, they should take out or dine in. 

"Corporate greed, it shouldn't be used against local restaurants that are literally struggling to survive," said Grubb. 

Arizona's Family reached out to Uber for a response but a spokesperson only directed us to information on the Eat Local campaign

 

Copyright 2021 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.

Recommended for you