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How GrubHub is dealing with storm travel bans

New York City Mayor Bill de Blasio struck a nerve with his constituents.

De Blasio took pre-emptive safety measures Monday night by implementing a travel ban on all nonemergency vehicles and personnel as the city expected to get hit with over 3 feet of snow. The ban, de Blasio said, also applied to food delivery vehicles. Nevertheless, GrubHub, a food-ordering app, received delivery orders during the ban, CEO Matt Maloney said Tuesday.

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"We did have orders last night during the travel ban that were walking orders," Maloney told CNBC's "Squawk Alley." Restaurants were able to process orders by "opting in" to the GrubHub platform if they so desired, he said.

Maloney also said the company has been in constant communication with the restaurants using GrubHub's services to get a better sense of the situation. "In some neighborhoods, it was OK," he said. "They could potentially get on their bikes and it was fine. Other neighborhoods were really hard hit."

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GrubHub is in close communication with restaurants in Boston and the Greater Boston Area because of the weather conditions there. "Boston is a disaster zone, so we're working closely with the restaurants [there]," Maloney said. "[Boston] is still under a travel ban, so we're in an emergency situation there."

The Chicago-based company experiences demand spikes during cold weather, but there can be too much of a good thing, Maloney said. "When you're in a blizzard situation, it's tricky," he said. "The drivers don't always go into the restaurants. The restaurants have a hard time preparing the food, so when demand spikes with this inclement weather, a lot of times supply is throttled."


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