Editorial Board
How Not to Help Restaurants During the Pandemic
Cities that enact price controls on food delivery apps are likely to hurt the very businesses they aim to save.
Not the problem.
Photographer: Fabrice Coffrini/AFP/Getty Images
Alarmed at high fees, restaurant owners are demanding that delivery services such as Grubhub Inc. cut them a break during the pandemic. Unfortunately, politicians are listening.
New York City imposed price controls on the apps this week, prohibiting them from charging delivery fees of more than 15%. San Francisco, Seattle and Washington have made similar interventions. Many other cities will be tempted to follow suit. They shouldn’t.