- New York just passed a temporary 15% cap on third-party delivery commissions and a limit of 5% on marketing contributions and other related fees. And Uber Eats, which just made a bid to buy Grubhub, is locked in a bitter feud with Jersey City Mayor Steve Fulop.
- Food delivery is booming during the pandemic, and so is the conflict over how third-party delivery companies operate.
- Now that many restaurants rely on third-party delivery for a majority of their income, the fees and commissions delivery companies charge are swallowing most of the profit.
- Delivery companies are also far from profitable. And Uber Eats’ bid to acquire Grubhub isn’t likely to change that.