The Clap
Some of the U.S.’s largest food delivery companies are suing New York City over a limit it put on fees in place during the pandemic.
Who is affected🤷
NYC put a temporary cap on delivery fees last June to help restaurants stay in business while in-person dining was closed.
The platforms can’t charge restaurants more than 23% per order. Broken down as 15% for delivery, 5% for having the restaurant listed on its app, and 3% for credit card processing fees.
Why is this important🤔
New York City continued to extend caps even as vaccinations allowed for more indoor dining. Companies claim this has cost them millions of dollars over the summer.
These companies argue they were “instrumental in keeping restaurants afloat and workers employed”, and described the law as government overreach.
