NYC Council Votes To Extend Cap On Food Delivery Fees In Pandemic
NEW YORK CITY — The New York City Council on Thursday voted to extend a measure it enacted in May that puts a cap on the delivery fees charged by third party food delivery platforms during the coronavirus pandemic.
The council first voted on May 13 to limit delivery fees for third-party services like Uber Eats, Seamless and Favor to 15 percent. The measure was intended to support restaurants without dissuading residents from ordering from local businesses.
The council voted on Thursday to extend the measure until 90 days after restaurants are allowed to reopen for indoor dining at full capacity.
In a council meeting, Speaker Corey Johnson said mandatory dining closures throughout the pandemic have, while helping to bolster public health, had the inadvertent consequence of harming small businesses.
"This pandemic has further exacerbated the issues that they have been facing for a long time," Johnson said. "The shutdown has been devastating for them on so many levels. We cannot afford to lose the business of the restaurants that make New York City, New York City."
The bill capping delivery fees passed with 44 votes in the affirmative and three in the negative.
The council also voted on Thursday to approve a bill that prohibits third-party delivery platforms from charging restaurants for telephone orders that do not result in an actual transaction.
The measure does allow third-party delivery platforms to charge restaurants for fees incurred during a transaction with a customer, but platforms cannot charge more than the actual incurred cost.
Both measures remain in effect until 90 days after restaurants are allowed to reopen to full indoor capacity.
"More is needed to help these vital businesses during this uncertain time, but I’m grateful for the tireless effort that went into making these bills a reality and the leadership of the council members who sponsored each one of them," Johnson said.
This article originally appeared on the New York City Patch
