Skip to main content

State agency targets Grubhub with proposal to cap fees

In the latest attack on Grubhub’s businesses model, a New York state agency proposed a cap on how much third-party companies can earn helping restaurants with food orders.

The New York State Liquor Authority says it wants to prevent third-party food companies from charging more than 10 percent commission for delivering food or for helping to generate orders — unless they become partners on the state liquor license.

If the proposal goes into effect, it could seriously cut into the profits at Grubhub because it is NY state’s largest food ordering company. It could also affect Seamless, which Grubhub owns, Uber Eats, DoorDash, Postmates and other food ordering and delivery services that can charge as much as 30 percent per order.

Grubhub shares closed Wednesday down 7 percent, to $60.90, a 52-week low. Neither DoorDash nor Postmates is publicly traded and Uber Eats is a relatively small part of ride-hailing company Uber’s business.

Grubhub criticized the draft proposal, which would be the first of its kind in the nation.

“The draft includes internal inconsistencies, vague language, and an apparent attempt by the SLA to go beyond their jurisdiction,” a spokeswoman said. “These points warrant clarification, not only for us, but the seven different categories of third parties referenced within the draft.”

But local restaurants, some of which have been feeling crimped by high fees from the Silicon Valley food company, cheered the news.

“We need some relief,” NYC Hospitality Alliance counsel Max Bookman told The Post.

The proposal confirms The Post’s July report that the SLA was considering limiting the commissions to 10 percent of sales.

Credit: Source link

The post State agency targets Grubhub with proposal to cap fees appeared first on Fox USA Live.



from Fox USA Live https://ift.tt/2KKG7ul
Labels:

Comments

Post a Comment

Popular

LPGA's most dominant player this season wins first major title

Jin Young Ko had dominated throughout the early season, only her second on the LPGA Tour. Third place or better in four of five events. No. 1 on the money list. Easily the best finisher on tour this year. Now, the 23-year-old South Korean can add a major championship to her lustrous resume. Playing... from latimes.com - Los Angeles Times http://www.latimes.com/sports/more/la-sp-ana-inspiration-round-4-20190407-story.html>
Post a Comment
Read more

Review: Animated ‘Chance’ takes on dog fighting with overly earnest yet well-intended spirit

The CG animated feature “Chance” is a well-intended but heavy-handed denunciation of the barbaric blood sport of dog fighting. The title character (voiced by Will Canon) is a dreamer of a pit bull, who believes in a canine god and a peaceful place where “Hatonas” (dogs) can live idyllic lives.... from latimes.com - Los Angeles Times http://www.latimes.com/entertainment/movies/la-et-mn-mini-chance-review-20190403-story.html>
Post a Comment
Read more

Convicted rapist killer strikes again after getting out of jail

A convicted rapist killer who strangled a teen in 1981 and was suspected of cutting out the eyes out of an earlier victim has been arrested on a new rape charge, six years after he got out of jail. Christopher “Crazy Chris” Aniades, 62, is being held on an attempted forcible rape charge after he allegedly attacked the victim, according to the city Department of Correction. He’s being held at the Eric. M Taylor Center in Queens on first degree attempted rape, according to the city Department of Correction website. His arrest on Aug. 2 was based on a warrant issued by the state’s Division of Parole. The NYPD and the state DOC said they couldn’t provide details on Aniades’ latest offense. Aniades, who was released on Aug. 20, 2013 after spending more than 30 years in jail, became a poster boy of the violent 1980s in New York, when homicides routinely reached 2,000 a year. He was sentenced to 25-years to life for abducting, raping and killing 19-year-old Doreen Vitale on Oct. 15 198...
Post a Comment
Read more