The NYC Council hopes to eventually pass permanent legislation in the future.
But once COVID-19 struck, many restaurants found themselves pivoting to delivery orders as their primary—if not only—source of income. With shutdowns already leaving restaurants struggling to stay in business, many local governments choose to swiftly take action.
The new restrictions will last for 90 days after Governor Andrew Cuomo lifts New York State’s lockdown. However, Gjonaj also said he still seeks a permanent solution. “While I am grateful that we are providing this much-need and immediate relief to restaurants looking for a lifeline during this pandemic, I remain confident that we will pass the full slate of third-party food delivery reform legislation that was introduced earlier this year,” he continued.
, even if the call did not result in a sale. The New York City Council also passed a bill that will ban companies from changing these kinds of fees. As expected, Grubhub—which has long been New York City’s top online ordering platform and has also faced the most scrutiny from the city—opposed of the new rules. “Any arbitrary cap—regardless of the duration—will lower order volume to locally-owned restaurants, increase costs for small business owners, and raise costs on customers.
. “We also believe that any cap on fees represents an overstep by local officials and will not withstand a legal challenge.”
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