New York places a cap on food delivery apps
New York City has put limits on how much food delivery apps can charge restaurants which use their platforms.
The proposition, which was put to the vote on Wednesday, will cap fees at 20 per cent and apply in emergencies when restaurants have to be shut.
There have been complaints regarding fees charged by technology companies amid skyrocketing deliveries during the lockdown.
Other US cities like San Francisco, Washington and Seattle also have introduced tighter rules for its programs.
Grubhub, the owner of online food ordering service Seamless and the most significant player in the US marketplace, warned that the city’s cap would increase costs for clients and reduce opportunities for employees.
However, the catastrophe for restaurants triggered by shutdown orders injected new urgency to the attempt, as many restaurants found themselves reliant on food delivery programs like Grubhub, Doordash and UberEats, for deliveries.
The companies currently bill restaurants a range that could exceed 30% per purchase, with fees for services such as marketing, taking customer orders and satisfying delivery.