Third-Party Delivery Regulation (Permanent Fee Cap)

The NYC Hospitality Alliance led the fight for to regulate third-party delivery companies and create a fairer and more equitable marketplace for our city’s restaurants with the most supportive reform in industry anywhere in the country. One of these reforms is:

Permanent Fee Cap

This now permanent law caps third-party delivery company fees at 5% for listing and marketing a restaurant on their platform, and an additional 15% for conducting the physical delivery of food and beverage. Additionally, the amount of the credit card fee may be passed through to the restaurant. This legislation is so important because third-party platforms were using their immense leverage and their market share over local restaurants to extract fees sometimes exceeding 30% of each order processed, while using other sophisticated techniques to keep restaurants on their platforms, increase fees and engage in other exploitative practices. Read legislation