NYC Council Introduces Limits On Food Delivery Services

The New York City Council unanimously approved a number of bills Thursday was designed to limit the reach of third-party delivery app providers. They are taking advantage of devastated restaurants as a result of concerns the COVID-19 pandemic, even though they also helped them survive.

The council extended until February 17, 2022 a cap imposed during the pandemic Delivery charges are 15%, and marketing services are 5% The The cap was due to expire next month. This would have allowed apps Based on the services, charge commissions as high as 30%-35%.

“Small” These fees should not be forced on businesses. Francisco, Queens Council Member Moya, the bill’s sponsor. “To allow the temporary limit to expire This would severely hinder the recovery of many businesses that are already in trouble. Just starting to get on their feet again.”

Andrew Rigie is the executive director of NYC Hospitality Alliance. He praised the council for curbing what he called “the abuseative.” “Business practices of mega-sized third-party delivery businesses” Despite “misleading statements” from the industry.

Delivery app Companies strongly opposed the extension. Grant, GrubHub spokesperson Klinzman called fee caps “arbitrary prices controls” and predicted that they would be implemented. “Result in harmful and long-term consequences to locally-owned businesses Businesses, delivery workers, diners and the local economy.

Many The apps offer restaurants a variety of options at different price points. DoorDash reported that it provides a basic plan for restaurants. Delivery fees of 15% are charged. This fee covers both background and insurance. Delivery workers are paid and checks.

Third-party delivery services worried the city would enact a permanent cap like San Francisco did on the fees charged to restaurants. Bronx Council member Mark Gjonaj stated that a temporary extension should “withstand all challenges” by the apps.

Other Limits approved by the Council

Another bill approved on Thursday requires the apps to get written approval Before a restaurant owner lists their business, they can get this information from them. This bill also Restaurants are not required to compensate delivery platforms. They will be responsible for any damages that may occur after food and beverages have been removed from the premises Restaurant

The council approved another bill that requires the apps to share customer data After the industry complained that its members should be able to open restaurants, they were able to. Customers can be identified. This includes information about a customer. Name, phone number, email address, delivery address and contents They will be notified of your orders.

Concerns were raised by delivery companies about Customers’ privacy rights were respected by groups such as Gay Men’s Health. Crisis and the Haitian American Caucus. It claimed that 30% of its members were from Haiti. It is immigrants and would not allow them to compromise. Situations

DoorDash recommended that customers be required To opt in to having their data shared by a restaurant instead Opting out. The legislation is not effective for the time being, according to a spokesperson. several months and stated that “we will continue fighting to protect the Privacy of our customers

Restaurants are not allowed to comply with the law. You must not sell customer information without their permission. Despite passing The bill caused enough concern that a Brooklyn Council Member was forced to sign it. Carlos Mechaca stated that he would work with Keith Powers, its sponsor. Manhattan to increase protections so New Yorkers data cannot be accessed Other entities like Immigration and Customs can take it into their hands. Enforcement

Jonathan Forgash is the executive director of Queens Together Restaurant Association, applauded the legislation. These laws will allow our restaurants to take control of their customers. He stated that data is key to reducing costs and ensuring success in business.”

Another bill extends a pandemic-era restriction through February on charging customers for phone calls that don’t result in an order. The council also approved new legislation aimed at stopping apps from listing phone numbers that are not really linked to an individual restaurant, but appear to be and end up costing customers money when they call.

Depending on the law they are breaking, the city can fine companies up to $500.

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