New York City Council limits food delivery charges

In the first such move anywhere in the world, New York City Council has voted to cap the amount of commission a third party delivery service can charge. The limit is 15% per order for delivery and 5% per order for all other types of charges.

The aim of the New York City Council edict is to protect small businesses that have been impacted by the pandemic during lockdown. Restaurants for example haven’t been able to serve food on the premises and have been reliant on hot food delivery companies like Deliveroo to maintain revenue streams.

“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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