WASHINGTON (7News) — The D.C. Council this week has passed an emergency bill that offers restaurants relief against high delivery app fees. After being amended and adjusted, the legislation passed unanimously. Third-party companies like GrubHub, DoorDash and Uber Eats offer restaurants delivery package plans that range from 15% to 30%. In March, after the city’s 15% …
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Massachusetts court says Grubhub overcharged restaurants
A Massachusetts Superior Court ruled Thursday that Grubhub had overcharged for its delivery services early in the pandemic by tacking a credit-card processing fees onto the maximum commission permitted by the state on to-go orders. The decision came in a lawsuit filed against Grubhub by the Massachusetts attorney general’s office in July 2021. The action …
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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 …
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 …
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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 …
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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 …
The good news about food delivery
I’ve written about the downsides of companies that bring groceries or prepared food to our doors, like Instacart and Uber Eats. App-based fresh food deliveries take a toll on our neighborhoods and impose punishing demands on workers. But today I want to focus on a positive aspect of delivery apps. Newly published research from the Brookings Institution …
Uber Eats Joins DoorDash in Suing NYC Over Data-Sharing Law
New York judge orders for cases to be combined Both lawsuits claim NYC rule is unconstitutional Uber Technologies Inc.‘s Uber Eats has joined DoorDash Inc. in suing New York City over a law that makes delivery apps share customer data with restaurants. The data-sharing mandate “rewrites” agreements made between delivery platforms and restaurants and “runs roughshod” over …
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Why the Big Restaurant Delivery Apps Will Need the Courts to Save Their Business
At a Goldman Sachs conference last month, Uber CEO Dara Khosrowshahi addressed legislation capping the commissions restaurants have had to pay Uber (Postmates’ parent company) and other large delivery companies in recent months. Short-term regulation is unpredictable, but “long-term regulation is smart,” he said, because it follows common sense. Uber and other restaurant delivery companies like DoorDash are …
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