Grubhub: Axe third party delivery cap
Bronx elected offi cials think that canceling cap will be bad for business
BY JASON COHEN
As the cap on third party
deliveries is set to expire
in mid-September and the
City Council Committee on
Small Business hopes to extend
it, a major food delivery
company is trying to put
a stop the cap renewal.
On Aug. 20, Grubhub
launched a petition in an attempt
to axe the cap and has
plans for a paid campaign
targeting offi cials who
passed recent reform fl aws
that have given a lifeline
to struggling businesses
during COVID-19.
“I am writing to express
my strong opposition to the
City Council’s proposed
food delivery tax,” the petition
says. “The COVID-19
pandemic has devastated
local restaurants and hurt
delivery workers. This new
food delivery tax will make
things worse: New Yorkers
will pay more, local restaurants
will receive fewer orders,
and delivery workers
will earn less. It’s wrong –
any way you tax it.”
Councilman Mark Gjonaj,
chair of the Small Business
Committee, sponsored four
bills in May, including two
that would cap the amount
of commission a third-party
BRONX TIMES R 26 EPORTER, AUG. 28-SEPT. 3, 2020 BTR
delivery service is allowed
to charge at 15 percent per
order for delivery and 5 percent
per order for all other
types of charges. Gjonaj was
quite angry when he heard
that Grubhub was trying to
stop the cap on fees.
Gjonaj noted the NYC
unemployment rate is 20.4
percent due to COVID-19,
but eliminating the third
party cap will hurt business
and force more to shutter.
He explained that two
weeks ago, restaurant owners
testifi ed how the cap has
helped them bring in profi ts
and survive.
“This is a corporate attempt
to gaslight New Yorkers
and blur the truth,” he
said. “Instead of fi ghting for
the ability to gouge restaurants
with sky-high, business
killing commissions, it
would be far more helpful if
the economy committed to
focusing its energy on helping
its restaurant ‘partners;
get back on their feet and
save their employers jobs.
Now is not the time for runaway
corporate greed. Grubhub
would do well to take
the sentiment to heart.”
Councilman Mark Gjonaj, chair of the Committee on Small Business, is angry Grubhub is trying to stop the cap
on third party deliveries. Courtesy Facebook of CM Gjonaj
2173 White Plains Road OPEN
718-931-4335
Just South of Pelham Pkwy.
7 DAYS
WE CARRY A FULL
SELECTION OF
CBD
PRODUCTS
WE CARRY A WIDE VARIETY OF ����������������������������������������������������������������������������������
Organic Foods, Herbs, Homeopathic Products & More
WHERE
THERE IS
ALWAYS A
SALE