New York City Imposes Fee Caps on Delivery Apps

Fee Cap on delivery app

New York City is set to limit the surcharge food delivery apps can apply to restaurants using their platforms. City Councilman Mark Gjonaj sponsored the legislation and hopes it will relieve some of the corona-related hardships in the food industry.

New York City has set a cap on fees for food delivery services during emergency situations.

The move follows a class-action lawsuit filed last month by three restaurants in New York. The owners accuse Grubhub, Doordash, Postmates, and Uber Eats of charging excessive fees and taking advantage of the growing demand for delivery services during the coronavirus shutdowns. The tech platforms had been charging businesses nearly 30% per order, claiming services like marketing, order reception, fulfilling deliveries.

The City’s proposal, caps fees at 20% during emergency situations that necessitate the closure of restaurants.

San Francisco, Washington D.C., and Seattle have also put similar limitations in place.