Uber Eats adds $3 Portland customer fee on food delivery orders after city approves 10% commission cap

Correction appended Uber has added a $3 customer surcharge on all food delivery orders from Portland businesses in response to the city’s new 10% limit on how much third-party food delivery apps can charge restaurants in commission during the coronavirus pandemic. The new fee on Uber Eats, labeled the “City of Portland Ordinance,” began appearing on the […]

Portland ordinance takes a bite out of food delivery fees

PORTLAND, Ore. (PORTLAND TRIBUNE) — Portland’s City Council may join a growing list of cities limiting charges by third-party food delivery services. City commissioners consider Wednesday morning an ordinance to temporarily limit services like DoorDash, Grubhub, Caviar, Postmates and Uber Eats to a 15% charge for food deliveries. Dozens of local restaurants and business groups […]

San Francisco’s district attorney sues DoorDash for alleged unfair business practices

DoorDash, the high-flying food delivery startup, was sued by San Francisco’s district attorney Tuesday for alleged unfair business practices and worker misclassification. It was the latest legal challenge targeting a gig economy company in California since the passage of the state’s first-in-the-nation worker misclassification law. In a statement, San Francisco District Attorney Chesa Boudin accused […]

Uber, Lyft Drivers Are Employees, According to California Regulator

Uber and Lyft drivers are classified as employees, the California Public Utilities Commission has officially ruled. The regulator, which oversees ride-hailing companies, declared its decision in an order published on Tuesday. It said “a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor” under AB5, the state’s new law covering gig work, which became […]

Taco Bell parent Yum sues Grubhub for alleged violation of delivery deal

NEW YORK (Reuters) – Taco Bell parent Yum Brands Inc (YUM.N) sued Grubhub Inc (GRUB.N) on Thursday for allegedly violating a delivery contract, a day after Europe’s Just Eat Takeaway.com (TKWY.AS) agreed to buy the U.S. food delivery company for $7.3 billion. Yum invested about $200 million in Grubhub in 2018 and struck a partnership […]

Taco Bell owner sues Grubhub, claiming it violated distribution agreement

Yum Brands is suing Grubhub, alleging it violated the distribution agreement struck in 2018. Grubhub moved to impose new fees on KFC and Taco Bell franchisees after telling Yum that the restaurant company had breached the contract, the lawsuit claims. The lawsuit also claims that Grubhub showed signs that it regretted the contract it struck with […]

Postmates, Uber Offer Promotions for Black Restaurants, Raising Tough Legal Questions

New meal-delivery company promotions benefiting black-owned restaurants are raising legal questions about whether gig economy giants can offer race-based benefits. The programs, announced by Uber Eats and Postmates following the death of George Floyd at the hands of police, waive delivery fees for black-owned restaurants but make no such benefit available to other minority or […]

Audit Risks Emerge for DoorDash, Grubhub and Uber Eats

The boom in services delivering pizza, chicken wings and Kung Pao beef to millions sheltering at home during the Covid-19 pandemic is prompting a closer look into whether they’re properly collecting and remitting state and local taxes. Internet- and app-based platforms such as DoorDash, Grubhub, Postmates, Seamless and Uber Eats were already on tax administrators’ […]

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 […]

Santa Monica caps food delivery app fees for restaurants

Santa Monica will join several cities across the country in limiting the fees that food delivery apps can charge restaurants. Restaurants have been serving takeout and delivery exclusively for the last two months with the help of third-party delivery apps, which charge a sizable commission on each order. Many restaurants that grudgingly accepted a 20% […]