Seamless Takes a Cut Almost Equal To the Tip On Every Order

Great and powerful provider of food delivery Seamless and GrubHub take almost a 14 percent cut on every order, according to data culled by Quartz from the company's IPO prospectus. That means in some cases, Seamless is eating almost all the gratuity, if you give the traditional 15 - 20 percent.

That tidbit is interesting for the fact that Seamless (which owns GrubHub) doesn't publicize the amount of commission it makes on your hangover-squashing fare. Previous estimates have put the amount anywhere from 5 percent to 15 percent.


But in some cases that cut can be a sliding scale. Meaning, give Seamless more money, and your restaurant will be listed higher in search. Per the filing:

Restaurants can choose their level of commission rate, at or above the company's base rates, to affect their relative priority in its sorting algorithms, with restaurants paying higher commission rates generally appearing higher in the search order than restaurants paying lower commission rates.

So next time you search for "meatball sub," take into account that you might not just be seeing a certain restaurant listed higher because it's good. It might be because the joint's willing to pay up. [SEC via Quartz]

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