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City Council moves to extend food delivery caps on Grubhub, UberEats

Food-delivery companies like Grubhub and UberEats can expect their margins to get squeezed in the Big Apple for a while longer, The Post has learned.

City Council members are slated to meet Aug. 13 to extend emergency legislation that caps the commissions and delivery fees those companies charge restaurants. Passed in May, the strict rules are set to expire in mid-September.

The temporary legislation was aimed at giving struggling restaurants a reprieve during the pandemic from hefty fees that can be as much as 40 percent of a takeout order.

The council’s small business committee will meet next week to discuss extending the 20-percent cap — including 5 percent for marketing fees and 15 percent for delivery fees — to 90 days after restaurants are allowed to serve diners indoors at 100 percent capacity, a source familiar with the proposals told The Post.

In all likelihood that won’t happen until 2021, the source told The Post.

The committee also wants to extend a temporary moratorium on charging restaurants for telephone calls that never resulted in a food order — a practice first reported by The Post that Grubhub came under fire for last year.

Grubhub has in the past threatened legal action over this issue, alleging that the City Council is overstepping its authority.

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