NEW YORK (PIX11) — Food delivery apps in New York City may soon be able to charge local restaurants for optional marketing services if the City Council passes pending legislation.
In 2021, New York City put new limits in place, restricting how much food delivery apps can collect on each order. Currently apps can only collect a 15% delivery fee and a 3% transaction fee. Any other service fees cannot exceed 5%.
The pending legislation would keep the current 15% delivery fee cap in place, but it would also allow apps to charge a fee for marketing services that would be optional.
Joshual Bocian of Grubhub testified at a New York City Council hearing in favor of the legislation. “Grubhub is at its core a marketing company. We pride ourselves on providing digital marketing and advertising that many small restaurants cannot afford,” Bocian said.
But Andre Honore, who owns the Negril BK restaurant in Park Slope, has his reservations. “It’s just not a feasible thing for a lot of small businesses to be having a business partner essentially who’s getting 30% to 40% of your profits,” Honore said.
