NYC Council Targets GrubHub For Laws Protecting Restaurants
- Online food deliveries charging eateries 33% seen as threat
- App-based orders may capture 40% of restaurant sales by 2020
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When you order your favorite food from an app-based delivery service, you may not be aware that restaurant owners say those companies’ high commissions could drive them out of business.
New York City Council members have heard that concern. Thirty-one of them recently warned Grubhub Inc. executives to change industry practices or face some of the first U.S. laws regulating fees they charge restaurants. The council members also say they will put an end to companies charging for calls that don’t result in food orders.