New York City Council votes to cap fees charged by GrubHub, others during COVID-19

Under a bill passed Wednesday by the New York City Council, third-party food delivery services in New York, like Grubhub, DoorDash and Postmates, wouldn't be allowed to charge restaurants more than a 20 percent commission on orders during states of emergency like the coronavirus pandemic. Currently, the apps can charge restaurants fees of more than 30 percent per order, cutting into profits at a time when COVID-19 has shut the doors of eating places except for takeout and delivery orders.

The bill now moves to New York City Mayor Bill de Blasio's desk to sign. De Blasio said in a Tuesday press conference that he supports the bill.

The legislation would restrict 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 could charge only 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 of up to $1,000 per restaurant per day for the delivery services.

https://www.cnet.com/news/new-york-city-council-votes-to-cap-fees-charged-by-grubhub-and-others/?ftag=CAD-04-10abi6g&bhid=24447454298893839703959737945916&mid=12834381&cid=534320049