New York City Council to Take up Legislation Regulating Third Party Delivery Apps
The New York City Council will consider several bills geared towards addressing concerns surrounding the practices of third-party food delivery apps like Grubhub, Uber Eats and Door Dash. This package, set to be taken up in the coming weeks, aims to ensure that these delivery apps are not overstepping when it comes to their relationships with their restaurant partners.
While we await final language, the bills conceptually will:
- Require all third-party delivery companies be licensed by New York City
- Cap the commission that a third-party delivery company can charge a restaurant at 10%
- Prohibit third-party delivery platforms from charging restaurants for phone orders that never happened. The bill would assign a monetary penalty for infractions
- Require third-party delivery platforms to disclose to customers all commissions paid by the restaurant for a food order
- Prohibit third-party delivery platforms from limiting restaurants from charging different menu prices for online and in-store items.
- Require the use of tamper-evident packaging for third-party food delivery orders.
As with all legislation the devil will be in the details. The City Council is set to come out with language in the coming days and a hearing on this package will soon follow. We will let you know as soon as we have more information.
