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 …

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 …

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 …

Rideshare Drivers Could Make as Little as $4.82 Per Hour if Uber Gets Its Labor Law in Massachusetts, Study Finds

Uber, Lyft, DoorDash, and Instacart are looking to buy another law in Massachusetts by replicating Prop 22, the disastrous, virtually irrevocable California ballot measure that deprived their workers of employee status. Now, leading rideshare labor researchers from the UC Berkeley Labor Center have predicted how bad it could get—as little as $4.82/hour for Uber and Lyft drivers. …

Uber Eats, Grubhub, DoorDash sue NYC for limiting fees the apps can charge restaurants

Food ordering and delivery platforms DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have banded together to sue the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services. The Wall Street Journal first reported the news that the companies filed suit …

Chicago sues DoorDash, Grubhub for allegedly deceiving customers

The City of Chicago filed two sweeping lawsuits against DoorDash and Grubhub for allegedly deceiving customers and using unfair business practices. The suits echo longstanding claims from restaurant owners that the platforms advertise delivery services for their businesses without their consent and conceal lower prices that restaurants offer directly to customers outside of the platforms. The city also claims both platforms …