Uber, Grubhub, and DoorDash Under Scrutiny as the Industry Consolidates

Uber Technologies (NYSE:UBER) is buying Postmates and the ride-hailing businesses of BMW and Daimler, while Just Eat Takeaway.com is buying Grubhub (NYSE:GRUB). DoorDash previously acquired Caviar. Lining up against delivery California just banned the practice of adding restaurants to third-party delivery apps that the services don’t have a relationship with. Restaurants that didn’t offer their own delivery service as a means of controlling the […]

LOCAL GOVERNMENTS TURN UP THE HEAT ON DELIVERY COMPANIES

More governments this week joined the growing chorus of calls for more regulation—and awareness—of the business practices of third-party delivery companies. Activity included limits on delivery fees, a countywide consumer alert and a move in Nevada to refer Grubhub to the state attorney general’s office. Read on to get caught up. Attorney general tapped Officials in Clark […]

Chicago May Reconsider Capping Third-Party Food Delivery Fees

After taking a summer vacation from discussions, Chicago’s City Council is once again grumbling about third-party delivery companies with one alderman urging his colleagues to pursue capping what DoorDash, Grubhub, Uber Eats, and Postmates charge restaurants. This comes as the city on Wednesday announced a $500,000 grant program for ailing restaurants funded by DoorDash. While praising […]

Denver restaurateurs share why third-party delivery regulation was necessary

The problems started for Giles Flanagin, cofounder of Blue Pan Pizza, when Postmates marked up his menu prices 10% this year without asking his permission. Then came issues with third-party delivery drivers. One came into his Denver restaurant demanding to go to the front of the line, and another refused to wear a mask when she […]

Labor department considers new independent contractor definition, could be used to federally challenge AB 5

The U.S. Department of Labor (DOL) is revising its interpretation of independent contractor status under the Fair Labor Standards Act (FLSA), which could open the door for federal challenges to Assembly Bill (AB) 5. “Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make […]

Restaurants get a break on profit-eating delivery fees from third-party apps

A law passed Monday by the Denver City Council caps fees taken by third-party food-delivery apps at 15 percent of the customer’s tab. City Councilwoman Kendra Black sponsored the bill in response to the pandemic-caused recession that has leveled local restaurants. A quarter of all jobs lost in Denver during the COVID-19 era have come […]

California law bars delivery companies from adding non-partnered restaurants

Dive Brief: California Gov. Gavin Newsom signed two pieces of legislation into law that would create regulations for the food delivery industry, according to the Los Angeles Times. The first initiative, signed on Wednesday, requires aggregators to sign formal, written agreements with restaurants before adding the company to their marketplaces and providing delivery.  The second law, signed […]

Denver restaurants could see less third-party delivery fees

DENVER — At Blue Pan, they strive to make every pizza excellent. “Currently, we’re the only Detroit-style pizzeria in Denver. The main characteristic of our product is the caramelized crust,” said Co-Founder of Blue Pan Pizza, Giles Flanagin. Their last five years in business have come with lessons, especially when it comes to using third-party […]

Third-party delivery fees continue to vex local restaurants

Efforts to limit the fees that third-party delivery companies can charge local restaurants have run into a few snags. More than a month after Clark County adopted an emergency ordinance capping fees at 15 percent, moves to pass similar measures in Las Vegas, North Las Vegas and Henderson have stalled. Moreover, Clark County Commissioner Tick […]

Third-Party Delivery Apps Still Overcharging, Clark County Restaurants Say

Restaurant owners in Clark County say that third-party delivery apps are not complying with a new temporary cap on fees. Last month, Clark County approved a 15 percent cap on fees during the coronavirus pandemic. Restaurant owners say that as customers turn to delivery, they relied on third-party apps such as GrubHub, Uber Eats, and Doordash to […]