NYC Officials Are Looking Into Grubhub’s Reviled Restaurant Fees

New York City government officials are now diving into the Grubhub debacle, in which several restaurants have accused the food delivery app of slyly charging fees for customer phone calls that never resulted in actual delivery orders.

City Council’s Committee on Small Business will hold an oversight hearing to investigate those fees, as well as others charged by similar apps like like DoorDash and Uber Eats — an act that could eventually lead to more government regulation.

The hearing will go down on June 27, giving local restaurateurs a chance to voice their concerns. City officials will specifically focus on how these fees and other policies are affecting NYC restaurants, especially small mom and pop shops, the Post reports.

…The councilman believes the fees could severely hurt small restaurants. The hearing will also look at several potential legal issues surrounding the way Grubhub operates, such as the fact that it records phone calls made to the restaurants through its app, a potential privacy issue, and how much of a percentage it can charge restaurants, especially since New York law requires all partners who share in revenues to be listed on a liquor license, according to the Post.


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