Council President Mike Khader has proposed a local law creating a new chapter of City Code conerning third party delivery services.
A draft of the law states, “The City Council seeks to protect and promote the small businesses and restaurants in the City of Yonkers. Delivery service providers have been charging very large fees to the small business and restaurants.
§ 32-2 Cap on Delivery Third Party Services. It shall be unlawful for a third-party delivery service to charge a food establishment or its customer a delivery fee or any other surcharge of more than 10%.
Many restaurants and take out establishments have been complaining for some time about the large delivery fee forced upon them.
“Did you know that when you order from Grubhub or Uber Eats they take 30% from the restaurant you are ordering from? Yes, 30%!
So many of the local restaurants in Westchester & NYC work on 30% margins and less in many cases.
These companies also tie the hands of your favorite restaurant. If a restaurant works with Grubhub or UberEats they MUST (according to a contract) offer all specials to both the in-house customer and the app customer. This means that technically, a restaurant can’t provide a FREE appetizer to a frequent customer or a discounted price to someone who dines with them several times per week unless that SAME offer is made on Grubhub and UberEats to everyone.
These two companies are spending millions of dollars in advertising to make you think they are helping local restaurants during the COVID-19 shutdown, all while they are just taking advantage of an unprecedented time in our history,” wrote one unhappy restrauant owner.
