In its latest effort to curtail the unfettered growth of food delivery services like Grubhub and Uber Eats, the New York City Council is set to introduce a package of bills today that will limit the amount of commission these apps can charge restaurants in the city, the New York Times reports. Delivery apps routinely charge between 15 to 30 percent commission, which many restaurant owners have complained significantly impacts their business and profit margins — several NYC restaurants that have closed in recent months have blamed high delivery fees and the overall delivery food culture in the city. In addition, a recent Times investigation revealed that using delivery apps can be up to 91 percent more expensive for diners than eating at the restaurant.
This new package of bills will require apps to charge restaurants no more than 10 percent commission and ask that delivery companies be licensed through the city’s consumer affairs department so they can be disciplined if they fail to meet new requirements. It’s not yet clear if this package of bills will be approved, but food delivery apps have been under increased scrutiny by the City Council, particularly after it was revealed that Grubhub was charging restaurants for calls that never resulted in any food orders. The city previously held hearings about the phone call charges and plans to hold similar hearings on this new package of bills in April.
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