New York City extends food delivery app fee limit until February 2022

New York City limits food delivery app fees to help restaurants Surviving the COVID-19 pandemic, And as the recovery begins, it will maintain these limits. Gotham Pie Report The city council passed a bill extend The upper limit of the delivery application fee is until February 17, 2022. The restriction will expire in August, and the delivery fee will be kept at a level not higher than 15%, and other service fees will not exceed 5%. If there is no fee cap, the app may charge up to 35%.

Francisco Moya, a member of the Queens District Council, claimed that the higher cost of reinstatement would “completely” hinder businesses that have just started recovering from the pandemic.

Other bills passed at the same time require applications to obtain written approval before listing businesses and share customer data with restaurants. The delivery service was criticized, litigation and legislation After listing restaurants in their app without permission.

The creator of the app opposes New York City’s new measures. GrubHub claims that the upper limit is “arbitrary price control”, which is said to harm businesses and the economy. At the same time, DoorDash suggests that sharing data with restaurants should be opt-in instead of being enabled by default. A spokesperson said the company is determined to “protect user privacy.”

These companies are not entirely opposed to lowering fees. Dash, GrubHub, Uber Eat As the pandemic began, others began to cut and waive some fees. As you might guess, their concern is that these caps may become permanent and limit the long-term viability of the application.This is not an unfounded fear-San Francisco Board of Supervisors Recently voted Permanently limit the cost of the city’s delivery app.

At the same time, there is no doubt that restaurants are eager to avoid reverting to pre-pandemic expenses.Due to the high cost, some restaurants just reluctantly list themselves in these apps, and in many cases supply Reward for customers who ordered directly. Although an extension in New York City may not ensure the survival of a given restaurant, it can help that restaurant maintain familiar profits or control prices.

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