Big Apple Takes Bite Out of Food Delivery

The Wall Street Journal2021-08-02

New bills passed in New York City could curb some appeal of companies like Grubhub, DoorDash and Uber Eats. The New York City Council has long had a bone to pick with food delivery platform Grubhub....

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CandiceTee
2021-08-03
CandiceTee
zzz[微笑]
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2021-08-02
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Lalalala
KeeBoonTong
2021-08-02
KeeBoonTong
Lalala
Fanny_Lee
2021-08-02
Fanny_Lee
💪💪
xiaoming1
2021-08-02
xiaoming1
Okokokooo
LEEQF
2021-08-02
LEEQF
Wow
- xiaoming1:
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On Thursday, the council said it passed five bills meant to shift some of the balance of power away from food delivery platforms toward “struggling mom and pop shops.” The bills include some straightforward legislation like providing a restaurants’ direct telephone number to eaters and prohibiting platforms from charging restaurants for phone orders that don’t result in transactions.\nBut they also include more controversial and likely more consequential rules. One, if put into effect as anticipated, wouldextend temporary capsplaced on the commissions food-delivery platforms can charge restaurants at least until mid-February, 2022. Beyond what was decided last week, the city council says it is also scheduled to review a permanent commission cap bill this month.\nLong-term caps sound ominous for food delivery companies, but the true extent of their effects isn’t fully known. 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While it remains unclear as to exactly what data this rule will cover, a summary of the bill suggests it could include eaters’ names, phone numbers, email addresses, home addresses and what is ordered.\nThat would arm restaurants with information they could use to determine where their orders are coming from, helping them to assess delivery platforms’ individual worth. It could also significantly lower switching costs between platforms and help enable restaurants to better access customers themselves.\nWhile a lot has been said of commission caps in food delivery, deciding who has access to eaters’ data is no less controversial. Food-delivery platforms have argued such a law would put eaters’ personal information at risk, noting consumers should be able to opt-in to data sharing rather than opt-out. Others have described third-party delivery as a “gatekeeper” of data with one source likening platforms to a “diner cartel” that is finally being busted.\nNew York’s move is of particular importance to Grubhub since the city is its largest U.S. market. As of June, Bloomberg Second Measure data show Grubhub and DoorDash were tied with the market share lead in New York City with 35% a piece to Uber Eats’ 29%. Elsewhere, temporary caps have been put into place across many cities and suburbs nationwide. In June, San Francisco became the first city in the U.S. to pass a permanent fee cap.\nNew York looms large for food delivery. 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