New York City caps ultra-fast-delivery commissions

New York City has announced it is to make its 23% commission cap on ultra-fast delivery permanent. This follows San Francisco’s decision to permanently cap such commissions at 15%, and other US cities are set to follow suit.

New York City Council voted last week to cap food delivery commissions at 15%, 5% for add-ons such as marketing and 3% for transaction fees.

Until the cap was introduced, some firms were charging as much as 30%.

“We are not here to enable billion-dollar companies and their investors to get richer at the expense of restaurants,” said council member Francisco Moya. 

The news has enraged the companies involved, who say that they will challenge such actions in court.

“This permanent price control is flagrantly unconstitutional and will hurt local restaurants, delivery workers and diners across NYC,” said Grubhub. “We will vigorously fight this illegal action.”