NYC Council extends cap on delivery app fees for restaurants

Local News

NEW YORK — The New York City Council passed several new restrictions for third-party food delivery apps in an effort to help keep more cash from deliver orders in the hands of local restaurants.

The apps now have to get a written agreement and permission from a restaurant before they can list them as pat of their deliver service. Apps will also have to list the restaurant’s direct phone number. The council also extended a measure that limits the commission an app can collect to 5% for marketing and 15% for deliveries.

Andrew Rigie, Executive Director of the NYC Hospitality Alliance, praised the legislation.

“A lot of these companies were charging restaurants bogus fees, they continue to charge them these sky high fees often taking more money from the restaurant per order than the restaurants actually making,” Rigie said.

Upper West Side Restaurant owner Jeremy Wladis was also in favor, saying at his new restaurant Sushi85, “about a third of all the business will end up being delivery.”

Grubhub was not happy in responding to the legislation.

“It could result in damaging and long-term consequences for locally-owned businesses, delivery workers, diners, and the local economy,” a spokesperson said in a statement to PIX11 News.

Meanwhile Wladis is working on a local alternative, WestSideEats.com.

“We started an app called Westside eats, which is a community based platform where we only take 5% and we donate some of that money to an organization in the community,” said Wladis.

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