Mayor de Blasio just put a cap on hidden delivery service fees to help small businesses
As restaurateurs across the nation have been required to close their dining rooms due the state of emergency, there have been ways that they’ve still been able to maintain business. One of the solutions to this problem was providing curbside pickup and delivery services. By providing these options to customers, restaurateurs were able to still make some profits during this time of financial struggles, but still not compared to what they were used to making. One factor that’s been making delivery services difficult is the hidden fees put in place by delivery services such as GrubHub and DoorDash.
Essentially, these hidden fees are making it harder for restaurants to make a profit, especially considering the current circumstances. While restaurants owners are working extra hard to accommodate for their customers during these trying times, outside delivery services have been taking advantage of them. For instance, there have been several reports over the years about customers making calls regarding the menu, and ending up not placing an order. Just by doing so, these restaurants are then charged a hidden fee, which ends up making a profit for the delivery service.
Although delivery services have been getting away with these fees for a while now, restaurateurs are noticing the damage now during a financial crisis. With New Yorkers up in arms regarding how this impacts their businesses, Mayor de Blasio signed a COVID-19 relief package on May 26th. This legislation put into place will help support struggling small businesses by imposing limits on third-party delivery service fees. Any of these fees will be capped at 15% per delivery order, and 5% for any other charge. This cap will last for the rest of the city’s emergency status, and for 90 days after.
Article source: “NYC Caps Delivery Fees at 15 Percent”
By Chris Crowley