NYC Caps Restaurant Delivery App Service Fees During COVID-19

upstart writes in with an IRC submission for Bytram:

NYC caps restaurant delivery app service fees during COVID-19:

Third-party food delivery services 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 passed by New York City Council members on Wednesday. These apps can charge restaurants fees of more than 30 percent 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 no more than a 5% fee per order for other types of charges (like credit card processing and marketing).

Violations of the law could mean fines up to $1,000 per restaurant per day for the delivery services.

[Editors Note: fixed typo 14May07:20 to "no more than"]--JR]

Original Submission

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