New York City to Limit Company Fees for Online Food Delivery
- Grubhub, DoorDash are among those targeted by the City Council
- It would be illegal to charge more than 15% for delivery
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New York’s City Council is set to approve emergency restrictions on fees charged by companies such as Grubhub Inc. and DoorDash Inc. amid a flourish of demand for online food-delivery during the coronavirus outbreak.
The council vote on Wednesday would bar charging restaurants delivery fees exceeding 15% per order, and limit fees for marketing or other services to 5% per order, with violators fined up to $1,000 per restaurant per day. Another bill would prohibit companies from charging restaurants for phone calls that don’t result in orders, carrying $500 penalties.