SoylentNews is people
SoylentNews
Submission Preview
NYC Caps Restaurant Delivery App Service Fees During COVID-19
████ # This file was generated bot-o-matically! Edit at your own risk. ████
NYC caps restaurant delivery app service fees during COVID-19 [cnet.com]:
Third-party food delivery services [cnet.com] like Grubhub, DoorDash and Postmates operating in New York City won't be allowed to charge restaurants more than 20 percent commission on orders during states of emergency like the coronavirus pandemic, according to a bill [nyc.gov] passed by New York City Council members on Wednesday. These apps can charge restaurants fees of more than 30 percent [cnet.com] per order, cutting into profits at a time when COVID-19 has shut their doors except for takeout and delivery orders.
The legislation restricts fees charged by third-party food delivery services during states of emergency when restaurants are prohibited from serving customers in-house, and for 90 days afterward. During these periods, the services can only charge up to 15% per order for providing delivery services, and more than a 5% fee per order for other types of charges (like credit card processing and marketing).
Read more:Best food delivery service: DoorDash, Grubhub, Uber Eats and more compared [cnet.com]
Violations of the law could mean fines up to $1,000 per restaurant per day for the delivery services.
The bill now moves to New York City Mayor Bill de Blasio's desk to sign. De Blasio said in a Tuesday press conference [cbslocal.com] that he supports the bill.
"This is one where we want to make sure people are treated fairly," de Blasio said during the press conference. "And they saw something that wasn't fair to every day people going through so much, and I think it's smart legislation, so I will support it."
Other cities, including Jersey City, Washington, D.C., Seattle and San Francisco have also capped third-party delivery service fees [politico.com] in the wake of the pandemic.
