City council unveils bill with new regulations for food delivery apps in NYC

Kimberly Dole
February 27, 2020 - 12:09 pm

usa today

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NEW YORK (1010 WINS) -- Council members proposed a legislation on Thursday that aims to limit the percent of commissions food delivery apps can charge New York City restaurants.

Under the new bill, food delivery app like Uber Eats and GrubHub would face tough new regulations. The legislation would force these companies to get a license to operate through the city’s Department of Consumer Affairs also cap their commissions at 10 percent.

Councilman Mark Gjonaj is introducing the legislation hoping to give mom and pop restaurants in NYC a fighting chance against the unreasonable fees food delivery apps charge.

"David and Goliath is what you have here," said Mark Gjonaj. "We just want to give the traditional brick-and-mortar, mom-and-pop restaurants a fighting chance."

John Collins, a spokesman for Grubhub, feels that restaurants benefit from the app because they get new customers from the millions of dollars it spends in advertising.

He argues that the bill will end up hurting small businesses in the end. 

"This bill will slash business to mom-and-pop restaurants and hurt consumers in the process," Collins said in a statement.

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