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De Blasio signs bill capping NYC restaurant delivery-app fees

De Blasio signs bill capping NYC restaurant delivery-app fees

Mayor Bill de Blasio signed several bills on Tuesday that could temporarily eat into the profits of food-ordering and delivery apps like Grubhub and UberEats.

Starting June 2, the commissions that food-delivery apps can charge Big Apple eateries will be capped at 20 percent — or 15 percent for delivery charges and 5 percent for any other fees. Such apps have been criticized for charging as much as 40 percent in some cases for orders they help generate and deliver.

Grubhub, which owns Seamless, will also be forced to stop charging restaurants fees for telephone orders that did not result in a take-out order. The Chicago firm has come under fire for charging restaurateurs for answering the phone, even when no order was placed, after The Post first reported on the practice last year.

The new laws will remain in effect for 90 days after New York’s state-of-emergency order is lifted.

Grubhub on Wednesday reiterated its previous statement that the commission cap is “arbitrary” and “will not withstand a legal challenge.”

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James Thompson

James Thompson

James Thompson has worked in various news organizations and now aims to make Report Door one of the best and fastest growing news websites in the U.S. He contributes to the US and World sections.

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