Food delivery wars: Duke professor says there’s a better way

by Robert Swinney, Duke University — January 13, 2023 . DURHAM – The rise of food-delivery services like DoorDash and Uber Eats provided a lifeline for restaurants during the pandemic. The relationship, though, seems to have soured of late, as people slowly resume their eating-out habits. One reason is an inherent flaw in the revenue-sharing contracts between the …

NYC COULD EASE ITS 20% DELIVERY FEE CAP

New York City could loosen its limits on the fees third-party delivery companies charge restaurants. Under a bill sponsored by 17 New York City Council members, providers would be able to charge restaurants more than they’re currently allowed to for things like marketing and promotions. Restaurants could opt in to the additional fees. The existing …

Uber Eats has to pay Chicago $10 million for listing restaurants without permission

Uber Eats agreed to pay the city of Chicago $10 million as a legal settlement for listing Chicago restaurants in both Uber’s and Postmates’ apps without the restaurants’ consent, according to reporting from the Chicago Tribune on Dec. 5. The legal agreement is the result of a two-year investigation into Uber’s practices and the company was found …

Uber Eats and Chicago Reach $10 Million Settlement Over Deceptive Practices

Last year, the city of Chicago sued both DoorDash and Gruhub, accusing the third-party delivery couriers in separate filings of illegal business operations. Allegations include accusing Grubhub of ignoring the city’s pandemic emergency fee cap and both platforms for listing restaurants on ordering platforms without their consent. Somehow, Uber Eats escaped the city’s legal fury, but …

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 …