Hoboken Takes A Stand Against Third-Party Delivery Fees

Hoboken NJ

08 February, 2021

6:25 PM

Description

HOBOKEN, NJ — Mayor Ravi Bhalla on Monday signed legislation recently approved by the City Council adopting a cap on third-party food delivery fees, in an effort to support small businesses. The regulations place limits on the fees third party delivery services and websites can impose on restaurants during the current State of Emergency. The previous statewide regulations on third-party food delivery fees recently expired, the city said. As of Feb. 23, and throughout the duration of the current COVID-19 State of Emergency, any third-party food takeout and delivery service application or website will be prohibited from charging a fee to a restaurant for take-out or delivery service greater than: 15 percent of the cost of the individual order; or, 5 percent of the cost of the individual order when the order is delivered by an employee of the restaurant or an independent contractor with whom the restaurant has contracted directly. "I'm pleased that Mayor Bhalla and the City Council have successfully secured a reduction in third party delivery fees for the hospitality industry of Hoboken," said Anthony Pino, owner of Bin 14 and Anthony David's. "The savings businesses like mine could realize from this could be thousands of dollars over the course of the pandemic." "Our business owners should have the peace of mind that they won't be stuck with exorbitant delivery fees at a time when they're struggling to make ends meet," said Bhalla. "This legislation will help our businesses keep as much revenue as possible to pay employees, pay rent, and more. My administration has been in touch with GrubHub which has pledged to comply." The ordinance, sponsored by Councilman Mike DeFusco and Council Vice President Jen Giattino, was initially proposed last year as part of a pro-business legislation package introduced during the onset of the pandemic, said a spokesperson. "Restaurants and cafes have struggled to stay afloat since the onset of the pandemic, and now more than ever they need all available resources to keep their doors open," said DeFusco. Council Vice President Giattino said, "Regulating the commission fees app-based delivery companies can charge small businesses will help them generate additional revenue to pay their bills, their employees and continue serving the residents of Hoboken for years to come." Want to be the first on your block to get Hoboken breaking news alerts, or a daily morning digest of news in the mile-square city? You can sign up for Patch alerts and/or a free a daily digest of news here: Sign up and choose your preferences. Got news? Email [email protected]. Got photos? Please include express written permission from the photographer for us to use them. To be the first to get free news alerts with breaking stories in your town, or to get a free local newsletter each morning, sign up for Patch breaking news alerts or daily newsletters.