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GrubHub agrees to tip-free fees with NY Attorney General

GrubHub home page
Source: GrubHub
GrubHub home page

GrubHub, the online food ordering company, has reached an agreement with New York's attorney general to begin excluding delivery tips from the pool of money from which it takes a cut in its deals with restaurant customers.

The agreement requires GrubHub to ensure fees it charges restaurants for its service does not sap tips from delivery people or other workers.

GrubHub went public earlier this month, and is a popular mobile-based app to order food without making an actual telephone call.

Read the full story here.

By Jason Del Rey, Re/code.net.

CNBC's parent NBC Universal is an investor in Re/code's parent Revere Digital, and the companies have a content-sharing arrangement.

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