City Council eyeing big blow to Grubhub, Doordash and others

The Big Apple is looking to crack down on the burgeoning food delivery industry with new legislation to be introduced next year, The Post has learned.

The legislation will come from New York City Council members who have been on a months-long, fact-finding mission into industry practices by Grubhub, Doordash, UberEats and others, according to Mark Gjonaj (D-Bronx), who heads up the council’s small business committee.

The council is zeroing in on the commission rates Silicon Valley delivery companies charge restaurants per transaction, which restaurant owners say can range anywhere from 15 percent to 30 percent of a single take-out order.

The council is also considering legislation tied to how delivery companies allegedly “manipulate” Google searches for restaurants, as a way to intercept diners’ orders that might otherwise go directly to a restaurant, Gjonaj told The Post.

“The sentiment is that there is a need for legislation because we don’t see the issues being worked out by the industry,” he said.

“More than likely it’ll be done in several rounds of legislation with the first round happening in the beginning of next year,” another source with knowledge of the plans told The Post.

The committee could crack down on another industry practice in which companies advertise free delivery while jacking up the menu prices consumers pay via their apps, the source said.

The food delivery industry has drawn the ire of NY politicians from Gjonai to US Senator Chuck Schumer in recent months — thanks in part to The Post’s reporting on overcharges and other practices that cut into restaurants’ already thin margins.

The food delivery industry is already fighting a proposal by the New York State Liquor Authority to cap the commissions they charge restaurants to 10 percent or less. Vincent Bradley, chairman of the agency that oversees NY state liquor licenses, suggested at a hearing in October that fees above 10 percent are likely illegal at NY restaurants regulated by the SLA unless the company charging the fees is also on the liquor license.

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