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GrubHub to Change Fee Structure Following New York State Investigation

Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.

GrubHub, the online food ordering company that recently went public, has reached an agreement with New York’s attorney general to start excluding delivery tips from the pool of money from which it takes a cut in its deals with its restaurant customers. The attorney general’s office had argued that the original fee structure of the company’s Seamless brand “may have been used by restaurants to shortchange workers out of their hard-earned tips.”

This article originally appeared on Recode.net.

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