Just Eat Takeaway Calls New York Maximum Commission Illegal

Food delivery company Just Eat Takeaway opposes a legal upper limit on the commissions the company can charge from restaurants in the city of New York.

 

The CEO of Thuisbezorgd Jitse Groen’s parent company calls the new law “unconstitutional” and bad for restaurants and delivery people in a tweet.

The city of New York has passed a law that limits meal delivery companies to a maximum of 15 percent commission they can pass on to restaurants. The law aims to help small restaurants recover from the corona crisis. Commissions can normally be up to 30 percent of the order amount.

According to Groen, whose company, Just Eat Takeaway, operates in the US after the Grubhub acquisition, the maximum commission means that customers will have to pay more delivery costs.

“That leads to fewer orders for restaurants and delivery people,” says Groen. He says he will oppose the new rule together with industry colleagues.