(Bloomberg) — Just Eat Takeaway.com NV Chief Executive Officer Jitse Groen fired back against New York City’s proposal to permanently cap fees that food-delivery businesses can charge restaurants and shops.
“Fee caps increase delivery fees for consumers, and therefore lead to a reduction of orders for both restaurants and couriers,” Groen said on his Twitter account on Friday. “We believe that these fee caps are unconstitutional, and we will join the industry to oppose them.”
Read More: New York City Council Passes Permanent Cap on Food Delivery Fees
The bill will stop food-delivery companies — such as Just Eat Takeaway’s newly acquired Grubhub business or rival Doordash Inc. — from charging restaurants more than 15% per delivery order and more than 5% for marketing and other fees. Its aim is to protect small businesses that are trying to recover from pandemic closures, Francisco Moya, the Queens Democrat who proposed the bill, said in a statement on Thursday.
Groen argued that the caps are “price controls that shift revenues from one class of businesses to another and invalidate lawful contracts.” He also said that the caps were already incorporated into the company’s earnings guidance.
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