In 2018 Yum Brands purchased a three percent stake in Grubhub with the delivery service contractually obligated to provide favorable pricing and service for Taco Bell and KFC restaurants operated by franchisees.  With the advent of COVID restrictions and an increased demand for home delivery, Yum franchisees have been obliged to use the service of Uber Eats and Postmates. Grubhub claims that this is a violation of the contract.  Yum requested that Grubhub renegotiate the contract, but the company demurred and notified franchisees of a new pricing arrangement requiring consumers to pay more for home delivery.

The 2018 contract allowed for a $50 million termination fee to be paid to Yum if Grubhub were to be acquired by a third party competing with Yum.  This past week Grubhub and Just Eat-Takeaway combination in the EU merged, complicating the relationship between Yum and its erstwhile service provider.

Grubhub has encountered concerted opposition from DoorDash and Uber Eats. The merger with the European partner was an attempt to achieve synergy by consolidating delivery services, reducing overhead and applying improved technology.