Jersey City Council OKs limits on how much DoorDash, Grubhub, Uber can charge restaurants
Jersey City legislators this week passed a new law restricting how much third-party delivery apps like Grubhub, Uber Eats and DoorDash can charge restaurants for their services — and providing new protections for the “deliveristas” who shuttle food around New Jersey’s second-largest city.
Councilman James Solomon, the bill’s author, estimated that the companies charge restaurants between 5% and 10% just to be on the apps, while the restaurants who use the services’ delivery workers are charged higher fees. He said that under the ordinance, if a restaurant is using the companies’ delivery services, the apps must offer a “tier” that charges no more than 15% of the order.
The new ordinance bars the apps from charging customers higher prices for menu items than a restaurant normally charges. The app service can only ask for a tip on a delivery order if the full amount would go to the delivery worker. The apps also must let delivery workers know how much travel time an order will take and ensure workers can decline an order without penalty.
Solomon said the service charge caps were modeled on similar laws in San Francisco, Seattle and Washington, D.C, while the worker protections were modeled on rules in. For the safety protections and training requirements for e-bike and cyclist delivery riders, he said the Council looked to neighboring
A spokesperson for Grubhub said in a statement that the company is “disappointed” that the City Council "has chosen to move forward with this ordinance that would devastate food delivery in Jersey City.” “The law would interfere with restaurants’ ability to select services from delivery marketplaces, threatens couriers’ ability to make ends meet, and imposes impracticable licensing requirements — all amounting to a massive, difficult-to-implement regulatory overreach,” the statement said.
Solomon, the legislation's sponsor, said enforcement would be up to the city's Office of Code Compliance, which could crack down if it receives reports that companies are violating the ordinance. Violations could lead to the revocation of permits for the companies operating in Jersey City, he said.
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