May 13, 2020 - Technology
Photo: Gary He/Getty Images
New York City's council passed a bill on Wednesday that will cap fees at 15% to restaurants from delivery companies during emergencies, following in the footsteps of cities like San Francisco, D.C. and Seattle. Mayor Bill de Blasio has indicated he will support the bill.
Why it matters: As restaurants turn to delivery and pickup to weather the COVID-19 storm, food delivery apps have been criticized for making it difficult for those eateries to stay afloat because of steep fees.
Details:
- Fees for fulfilling a delivery will be capped at 15% per order, while fees charged to restaurants for other services will be limited to 5% (third-party companies frequently charge for "marketing" and generating phone orders).
- The cap will go into effect during states of emergency, plus 90 days thereafter.
Go deeper: Uber and San Francisco tangle over food delivery pricing
Editor's note: The story has been updated to note that other cities like Seattle and D.C. have also implemented similar fees.