TRENTON, NJ – The Assembly Labor Committee advanced legislation early last week sponsored by Assemblywomen Serena DiMaso and Aura Dunn capping the fees charged by delivery services like Grubhub and Uber Eats during the public health crisis.
“It’s a margin killer for many of our Main Street businesses,” said DiMaso (R-Monmouth). “They’re keeping 32 percent of the order payment in a restaurant business where margins are maybe 15 or 20 percent.”
The sponsors worked with the New Jersey Restaurant and Hospitality Association as well as leading food delivery apps Uber Eats and DoorDash.
Fees would be capped at 20 percent of the order under the bill (A3978); or 10 percent if a third party is not actually making the delivery, and it is instead done by a restaurant worker or independent contractor.
The caps would remain effective during any state of emergency longer than seven days and would supersede any local caps already in place.
“Third-party services are no longer fringe experiments, but rather a mainstream piece of the restaurant business,” said Dunn (R-Morris). “For all their hard work to keep afloat, this cap helps those restaurants stay in business.”
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