Currently, the apps charge restaurants as much as 30 percent on each order. Gjonaj’s barb comes as the SLA is considering imposing a cap of 10 percent on commissions for third-party delivery apps like Grubhub, Seamless and Uber Eats. The survey, however, didn’t address whether Grubhub lures delivery customers to restaurants’ dining rooms. Six of 10, according to the survey, say Grubhub “brings the most value” to their businesses. In response, Katie Norris, a spokeswoman for Grubhub, pointed to an undated survey by Technomic in which seven out of 10 restaurant owners ranked it highest for attracting new customers. “As a matter of fact, many restaurant owners have said that the delivery services’ orders are cannibalizing their existing customer base,” he added. “We found no evidence that this is the case,” Gjonaj, the chair of the NYC Council’s Committee on Small Business, said in a letter to the State Liquor Authority, which has proposed new rules that would limit delivery companies’ profits. ![]() Grubhub lobbies to loosen NYC's pandemic-era fee cap law - as it sues cityĪ New York City politician is pooh-poohing claims by food-delivery apps that they help mom-and-pop restaurants more than they hurt them.Ĭity Council Member Mark Gjonaj on Monday pushed back against a key claim by Grubhub, the parent company of Seamless, to justify the stiff fees it charges restaurants - namely, that customers who order through its app also end up becoming profitable customers who eat at the restaurants, too. ![]() 'Outraged': NYC restaurants blast Grubhub over 'phony' lobbying pushĭidn't make a Valentine's Day reservation? Get Grubhub+ free, and enjoy 20% offĦ-year-old orders nearly $1.5K in pizza, jumbo shrimp and 'endless' chili fries on dad's phone
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