New York’s City Council is set to approve emergency caps on fees charged by companies such as Grubhub, Uber Eats and DoorDash in the wake of high demand for online food-delivery during the outbreak.

The council vote on Wednesday would bar charging restaurants delivery fees exceeding 15% per order, and limit fees for marketing or other services to 5% per order, with violators fined up to $1,000 per restaurant per day. Another bill would prohibit companies from charging restaurants for phone calls that don’t result in orders, carrying $500 penalties.

“During this unprecedented public health crisis, many restaurants are struggling just to stay afloat,” said Councilman Mark Gjonaj, the bills’ sponsor. “These bills could mean the difference between remaining open or closing their doors and laying off their employees.”

The laws would remain in effect for 90 days after the emergency is lifted and restaurants are able to accept in-house diners. Mayor Bill de Blasio said Tuesday he supports the laws.

Grubhub has said that this change will drastically affect the volume of orders coming into local restaurants.

We’re talking about 3rd party apps on this episode. 

What are your thoughts?

Original story: Bloomberg