How policies ‘protecting’ small restaurants from delivery apps are backfiring

Whether you’re a policy professional, restaurant owner, delivery driver or just someone who loves takeout, you may want to turn your attention to a few legal battles across the country. During the pandemic, at least 78 cities, counties and states in the U.S. have introduced temporary price controls restricting delivery companies from charging high commission fees to …

San Francisco weakens 15% delivery fee cap

Dive Brief: The San Francisco Board of Supervisors passed an ordinance Tuesday exempting companies from the city’s 15% delivery fee cap if said companies offer restaurants and other clients a “core delivery service” that costs 15% or less than the price of an online order. The ordinance, according to the San Francisco Board of Supervisors’ website, has …

Seattle approves permanent 15% fee cap on food delivery companies, with key compromise

The Seattle City Council voted Tuesday to permanently implement a 15% cap on the fees that services such as Uber Eats, DoorDash, Grubhub, and others charge restaurants for food delivery. The cap has been in place since April 2020, when it was implemented as part of an emergency order at the onset of the pandemic. It was meant to …

SF Board of Supervisors Considers Compromise With Delivery Giants on First-In-Nation Permanent Fee Cap

Next week the San Francisco Board of Supervisors could approve a new law allowing restaurants to pay higher delivery fees to apps like DoorDash and Grubhub in exchange for better visibility and more promotion. The legislation would essentially codify a loophole to the city’s first-of-its-kind permanent 15 percent cap on the fees restaurants pay to third-party delivery …

Sky-high delivery app fees are killing my restaurant, owner says months after pandemic cap lifted

When Robert Magiet opened TaKorea Cocina in Ukrainian Village in 2019, he couldn’t foresee the upcoming global pandemic that threatened the very existence of his restaurant, although he was able to get through it. Now, a service that became widely popular during the pandemic continues to threaten TaKorea Cocina’s existence: third-party apps used to take …

Third-party delivery companies sued by diners for anti-trust violations

Third-party delivery companies are facing more legal scrutiny as a New York federal judge allowed a lawsuit accusing Uber Eats, Postmates, and Grubuhb of menu price exploitation to move forward. The anti-trust lawsuit was originally filed in July 2020 and accused the third-party delivery companies of monopolizing delivery prices by not allowing restaurants who contract with them …

Grubhub, Uber Eats, Postmates must face diners’ lawsuit over U.S. restaurant prices

NEW YORK, March 30 (Reuters) – A U.S. judge on Wednesday said Grubhub, Uber Eats and Postmates must face an antitrust lawsuit by diners who accused them of driving up menu prices by exploiting their dominance in meal deliveries during the COVID-19 pandemic. U.S. District Judge Lewis Kaplan in Manhattan said it was reasonable to …

DC sues Grubhub, claiming its app is full of hidden fees and jacked-up prices

District of Columbia Attorney General Karl Racine is suing Grubhub for deceptive business practices, saying its food delivery app covertly inflates prices for diners who order through it. The suit demands an end to a laundry list of allegedly illegal practices as well as financial restitution and civil penalties. The newly filed lawsuit argues that Grubhub’s promises of …

Lawsuit prompts Grubhub to add disclosures about hidden fees

Washington D.C. Attorney General Karl Racine announced today that his office filed a lawsuit against Grubhub for “misleading District residents and taking advantage of local restaurants to boost its own profits.” The lawsuit alleges that Grubhub violated D.C.’s Consumer Protection Procedures Act (CPPA) in eight different ways, which mostly center on false advertising. The filing references misleading prices (prices …

US restaurant chain sues Google for directing customers away

San Francisco: A restaurant group in the US has sued Google for directing customers to unauthorised Google-branded food ordering web pages rather than sending them to the restaurant’s own website. The Florida-based restaurant group called Left Field Holdings, that runs Lime Fresh Mexican Grill franchises, alleged in the lawsuit that Google employs “bait-and-switch” tactics by …