Yesterday, the New York City Council extended emergency legislation capping how much food delivery apps like Uber Eats (NYSE:UBER) and Grubhub (NYSE:GRUB) can charge restaurants in the city.
The caps were meant to expire in September but will now continue until 90 days after restaurants are able to serve indoor diners at maximum capacity, which isn’t likely to happen until 2021.
Last week, Grubhub launched a campaign advising NYC residents to protest the fee cap since it could increase the price of takeout orders.
Passed in May, NYC’s legislation capped app fees at 20%, which included 5% for marketing and 15% for delivery. Previously, fees could often total up to 40% of the order.