The New York State Senate passed two bills on Tuesday, with almost unanimous support, that would change how restaurants work with third-party food delivery services.
One bill would prohibit third-party food delivery services, such as Grubhub, Doordash, Postmates, from charging a restaurant a delivery fee that totals more than 15% of the order price.
This law would be in effect while there is a COVID-19 public health emergency in place and “90 days after.”
Numerous restaurants have been calling for the passage of this bill, citing an uptick in service and delivery charges.
“Delivery service has become an integral source of revenue for the restaurant and tavern industry, and the exorbitant fees charged by third party delivery companies need to be capped in order for the industry to remain profitable,” said Scott Wexler, the executive director of the Empire State Restaurant & Tavern Association.
The State Senate also passed a bill with bi-partisan support that would require these third-party delivery services to have a valid agreement with an eatery before it advertises or sells their products.
“The third-party food delivery platforms and restaurants are providing a valuable service to consumers which has become essential during the ongoing pandemic,” Sen. Diane Savino, the bill's sponsor, said. “While consumers want this convenience, restaurants should have control over their product and how it is advertised, sold, and delivered. In food service, this is particularly important from a food-safety and sanitation standpoint.”
Both bills are yet to pass in the New York State Assembly.