COVID-19: New York votes to cap food delivery app fees during pandemic

COVID-19: New York votes to cap food delivery app fees during pandemic

New York City Council has voted to  cap the amount of commission a third-party delivery service is allowed to charge at 15% per order for delivery and 5% per order for all other types of charges.

The New York City Council says its aim is to protect small businesses impacted by the coronavirus/COVID-19 pandemic – during lockdown restaurants haven’t been able to serve food on the premises and have become reliant on food delivery companies.

“Small businesses and restaurants are the heart and soul of New York City and right now, they are hurting…They need help and this small business package is designed to protect them during this pandemic,” said City Council Speaker Corey Johnson.

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