Food delivery apps like UberEats and Grubhub can severely cut into a restaurant’s already-thin profit margins. However, city officials just passed an ordinance that caps how much delivery apps can charge, reports NJ.com.
Previously, commission fees charged by third party apps ranged from 15% to 30% per customer order, which is higher than a restaurant’s profit margin. Going forward third party apps can’t charge more than 15% per order. In addition, restaurants with their own delivery staff can only be charged 5% per order.
- Now open: Tamborim Jersey City
- Extended through January 17: Miracle on Mercer
Back in May, city officials passed a similar ordinance spearheaded by Ward E Councilman James Solomon. However, the ordinance was scrapped once the state passed its own 20% cap, which expired at the end of 2020.
Ordinances that cap commission fees aren’t unique to Jersey City. Seattle, San Francisco, Boston, New York, and Hoboken are just a handful of that have also passed similar measures.
While the apps certainly make the delivery process easier, the best way to support your favorite restaurants and businesses remains ordering directly through their website (or via phone) and picking up the order in person. While that might not be possible all the time, every bit counts these days.
How about Jersey City start a local delivery service…. thus helping to employing the many people here who need jobs.
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