Doordash in the News
Delivery workers in New York City will be paid a minimum wage
Category: Doordash in the News Author: admin Date: 2 days ago Comments: 0
Delivery workers in New York City will be paid a minimum wage

New York City is giving a raise to food delivery workers.

The New York City Council passed a “minimum per trip payment” today (Sept. 23) as part of a series of bills aimed at improving working conditions for app-based delivery workers. The measures also address longstanding problems for the city’s estimated 65,000 food delivery workers have faced, including access to restaurant bathrooms, limiting the distance for deliveries, and disclosing gratuity policies to workers.

This is the latest regulatory blow for delivery companies Uber Eats, DoorDash, and Grubhub. In recent weeks, the companies have clashed in a series of legal battles with San Francisco and New York City, cities where restaurants are essential to the local economy, over how much the services can charge restaurants, and about the sharing customer data with restaurants.

The plight of food delivery workers during the pandemic“Delivery workers have worked tirelessly throughout this pandemic risking their lives, their livelihoods,” said Carlina Rivera, a  New York City councilwoman, in a statement to Bloomberg. “They have almost singlehandedly sustained our restaurant industry. We all saw those photos of waist-deep water that they were wading through to bring people their food and medication.”

When restaurants tried to stay afloat during the pandemic, food delivery became more important to their success. But the increased regulation has also led delivery companies, which are struggling to become profitable, to increase costs for customers.

To determine the minimum pay, New York City will study food delivery working conditions. It will consider how delivery workers are paid, the total income food delivery workers earn, the equipment required to perform their work, the hours worked, and the average mileage of a trip, among other items. The minimum payment is to be established no later than January of 2023.

New York is not the only city looking to raise the minimum wage of food delivery workers. In mid-September, the Seattle City Council drafted a policy to set a pay standard for all app-based food delivery workers—an estimated 40,000 workers—ensuring the payment of minimum wage plus expenses.

Both Seattle and New York City have also passed minimum wages for ride-hailing drivers.

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DoorDash to deliver alcohol across 20 U.S. states, Canada and Australia By Reuters
Category: Doordash in the News Author: admin Date: 5 days ago Comments: 0
DoorDash to deliver alcohol across 20 U.S. states, Canada and Australia By Reuters

© Reuters. FILE PHOTO: A delivery person for Doordash rides his bike in the rain during the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., November 13, 2020. REUTERS/Carlo Allegri (Reuters) – Food delivery firm DoorDash Inc said on Monday it would launch alcohol delivery across 20 U.S. […]
The post DoorDash to deliver alcohol across 20 U.S. states, Canada and Australia By Reuters appeared first on Up News Info.
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Beckett Media Launches Crypto Initiative With Memorabilia Authenticator
Category: Doordash in the News Author: admin Date: 1 week ago Comments: 0
Beckett Media Launches Crypto Initiative With Memorabilia Authenticator

The sports media company is joining outlets like Time and Vogue Singapore in capitalizing on interest in blockchain

Beckett Grading Services

Some sports magazines are getting a digital makeover on blockchain. 

Beckett Grading Services announced on Tuesday it would allow collectors to store certificates of authenticity for sports memorabilia on blockchain. Through its media arm, Beckett Media Group, the company currently publishes 18 magazines related to sports and collectibles, including Beckett Baseball and Beckett Basketball.

“Beckett is an industry leader in sports and is sitting on one of the most valuable vaults of intellectual property in publishing,” Beyond Protocol CEO Jonathan Manzi told TheWrap. “Their entrance into blockchain is significant.”

Beyond Protocol will allow collectors to upload their certificates digitally to blockchain. They can then be sent and verified by other third-party companies. The blockchain startup is angling to be a leading player at the convergence point of sports, media and technology, promoting a service that is “probabilistically impossible to hack,” according to their website. Earlier this month, NFL tight end Rob Gronkowski demonstrated Beyond Protocol’s use by using it to send his biometric data to DoorDash. That is, Beyond Protocol tracked his health data through a workout, then used it to determine his exact nutritional needs and sent an order to the delivery company to match them.

“Many health providers still use antiquated technology to keep users’ confidential health data secure, which are prime for hackers,” a representative for Gronkowski told TheWrap. The blockchain “solves these security issues while allowing for a seamless integration with other services players depend on.”

Beckett’s announcement follows similar blockchain plays by Time and Vogue. In April, Vogue Singapore announced its September issue would contain a QR code with a downloadable non-fungible token (NFT) that contained a digital-only cover. One month later, Time released three of its iconic magazine covers digitally on blockchain.

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DoorDash, Grubhub and Uber Eats Sue New York City Over Restaurant Fees
Category: Doordash in the News Author: admin Date: 2 weeks ago Comments: 0
DoorDash, Grubhub and Uber Eats Sue New York City Over Restaurant Fees

Opinions expressed by Entrepreneur contributors are their own.

DoorDash, Grubhub and Uber Eats are suing New York City for pandemic-era caps on the fees they can charge restaurants. According to a complaint first posted by The Verge, the food-delivery apps are arguing that fee caps are government overreach that harm business. They’re seeking monetary damages and a jury trial in addition to an injunction to keep the city from enforcing the fee caps, which were made permanent in August of this year. 

SOPA Images | Getty Images

Under the capping rule, apps can’t charge more than 23% per order. Per The Verge, that breaks down to 15% for delivery, 5% for listing the restaurant on the platform and 3% for fees associated with credit card processing. 

Related: DoorDash vs. Grubhub: Which Stock Is a Better Buy?

The companies vowed in August to fight the caps. In a Thursday statement to the Wall Street Journal, NYC Councilman Mark Gjonaj, who chairs the small business committee, said, “The laws simply seek to bring fairness to a system that all too often lacks it.” In a statement to The Verge last week, a Grubhub spokesperson said the service had “worked hard during the pandemic to support restaurants in New York City and across the country,” and a fee cap would “lead to a reduction of orders for both restaurants and couriers.” Those points were also made in the filing last week.

San Francisco enacted a similar cap earlier this year, earning oppositional statements from DoorDash. That app and Grubhub sued San Francisco in July and Mayor London Breed decided not to sign the law — which was voted on unanimously in une by the San Francisco board of supervisors — because it was, she said, “unnecessarily prescriptive in limiting the business models of the third-party organizations, and oversteps what is necessary for the public good.”

Last week’s filing pointed out that when the caps were put in place in spring of 2020, they were “unconstitutional,” but “ostensibly temporary: “The law originally was schedule to expire 90 days after a declared public-health emergency that prohibits any on-premisis dining due to the COVID-19 pandemic.” The City Council “moved the goalposts three times” after that, per the complaint, extending the caps. 

“This now-indefinite legislation bears no relationship to any public-health emergency, and qualifies as nothing more than unconstitutional, harmful, and unnecessary government overreach that should be struck down,” argued the lawyers. 

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Delivery companies are being squeezed between investors and new caps on fees
Category: Doordash in the News Author: admin Date: 2 weeks ago Comments: 0
Delivery companies are being squeezed between investors and new caps on fees

Food delivery companies DoorDash, Grubhub, and UberEats filed a lawsuit against New York City Aug. 9 over the city’s cap on how much the platforms can charge restaurants to use their services.

In response to the pandemic, the city first imposed the fee cap as a temporary measure to help restaurants stay afloat. But last month it was made permanent, prohibiting food delivery companies from charging more than 15% per order for delivery and more than 5% per order for all other fees (except for transaction fees).

US restaurant sales are back to pre-pandemic levels, and the companies argue the price control is no longer related to a public-health emergency but “driven by naked animosity towards third-party platforms.” They claim it is unconstitutional because “it interferes with freely negotiated contracts between platforms and restaurants.” Left unchecked, the permanent cap will set a dangerous precedent, the companies said in the suit.

The food delivery companies also said they have spent “hundreds of millions” annually in marketing for restaurants on their platforms to help them reach new customers.

When the world shut down, the pandemic was a boon for food delivery. The US food delivery market has grown from $36 million in 2019 to $76 million last year, according to Euromonitor, a market research firm.

Restaurants saw them as a lifeline, but began to complain the commission fees were too high, with food delivery companies charging as much as 30% per order. So cities from Jersey City to San Diego enacted temporary caps on the fees to help restaurants stay afloat.

The economics of food deliveryBut the caps have put further financial pressure on the delivery companies, which are already struggling to turn a profit.

For years, the delivery services depended on their venture capital backers to subsidize deliveries for users, leading to frequent offers of food discounts and free delivery to lure new customers. But the freebies are long gone, and Uber and DoorDash, which are now public companies, are expected to show a clear path of profitability.

In a typical food-delivery transaction, the companies make money by charging fees to the customer, taking a cut of the bill from the restaurant, then paying the delivery person—making the the margins, particularly, thin. Uber reportedly lost more than $60 million in the New York City market due to pandemic-related fee caps, according to the Wall Street Journal. Meanwhile, Grubhub said it lost more than $100 million nationally last year due to fee caps.

With restaurants fighting back on delivery fees, earlier this year, DoorDash rolled out a tiered commission structure, ranging from 15% to 30%.

The food delivery companies say the caps will result in costs shifting to consumers, which will result in fewer orders and a decline in earning opportunities for delivery workers. But US customers are only willing to pay so much, and consider a $4 delivery fee “to be fair,” according to a Deloitte study from last year. There are only so many levers the delivery companies can pull.

DoorDash and Grubhub filed a similar lawsuit against San Francisco in July for passing permanent delivery fee caps, highlighting the burgeoning battle between food delivery companies and cities.

More broadly, delivery companies have been searching for new sources of revenue and performing more services for restaurants, such as operating ghost kitchens, which allows the companies to take a bigger share of restaurant sales.

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DoorDash, Uber Eats and Grubhub sue NYC over restaurant fee limits
Category: Doordash in the News Author: admin Date: 2 weeks ago Comments: 0
DoorDash, Uber Eats and Grubhub sue NYC over restaurant fee limits

DoorDash, Uber Eats and Grubhub are suing New York City over limits the city imposes on the delivery fees they can charge restaurants. The city brought in the caps on a temporary basis in June last year to help restaurants stay in business when dining rooms were closed to prevent the spread of COVID-19. NYC officials made the limits permanent in August.

Currently, the delivery apps can charge restaurants up to 23 percent per order, which includes three percent to cover credit card processing fees. Otherwise, they could have charged fees of up to 35 percent. In April, DoorDash introduced a tiered system that charges up to 30 percent in commissions.

The companies claim in their US District Court court complaint, which was posted by The Verge, that the cap is unconstitutional and tantamount to government overreach that will damage businesses. They’re seeking an injunction to stop the city enforcing the fee limits as well as damages and a jury trial. “Left unchecked, the ordinance sets a dangerous precedent,” they argued.

Councilman Mark Gjonaj, chair of the city’s Small Business Committee, said that NYC would maintain the caps and proceed with other oversight over delivery apps. “The laws simply seek to bring fairness to a system that all too often lacks it,” he told The Wall Street Journal. Engadget has contacted Uber Eats for comment.

“Grubhub has worked hard during the pandemic to support restaurants in New York City and across the country,” a company spokesperson told Engadget in a statement. “Despite our best efforts, the City Council recently passed an unprecedented and unconstitutional price control targeting the food delivery industry. Price controls increase delivery fees for consumers, and therefore lead to a reduction of orders for both restaurants and couriers. While Grubhub remains willing to engage with the City Council, we unfortunately are left with no choice but to take legal action.” 

Grubhub also contends that the NYC ordinance will hurt not only the apps, but restaurants and consumers. It suggests the fee caps will will lead to higher prices and fewer deliveries for couriers, as well as less choice for services for restaurants from delivery platforms. 

“New York City Council passed harmful, unnecessary, and unconstitutional price controls which leave us no choice but to resolve this matter in court, as we did in San Francisco,” a DoorDash spokesperson told Engadget. “Not only do price controls violate the U.S. and New York Constitutions, but they will likely harm the very restaurants the City purports to support.”

In June, San Francisco’s Board of Supervisors voted to permanently cap delivery app fees at 15 percent, becoming the first city in the US to do so. However, Mayor London Breed declined to sign the bill, claiming it was “unnecessarily prescriptive in limiting the business models of the third-party organizations.” DoorDash and Grubhub sued San Francisco to block the measure as well.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.

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DoorDash, Grubhub, and Uber Eats sue New York City over restaurant fee caps
Category: Doordash in the News Author: admin Date: 2 weeks ago Comments: 0
DoorDash, Grubhub, and Uber Eats sue New York City over restaurant fee caps

Delivery service platforms DoorDash, Grubhub, and Uber Eats are suing New York City for capping the amounts they can collect in fees from restaurants. In a complaint filed in US District Court court late Thursday, the companies argue that the fee caps are government overreach that will harm businesses. Along with monetary damages and a jury trial, the three companies are seeking an injunction to keep New York from enforcing the fee-capping rule that the city made permanent in August.

The city put a temporary cap on delivery fees last June to help restaurants that were relying on food deliveries to stay in business while they were closed to in-person dining because of pandemic restrictions. The platforms can’t charge restaurants more than 23 percent per order, which breaks down as 15 percent for delivery, 5 percent for having the restaurant listed on its app, and 3 percent for credit card processing feeds.

The delivery platforms have been accused of adding other unclear fees on top of their delivery fees, exceeding the maximum.

New York City Councilman Mark Gjonaj, who chairs the city’s small business committee, said in a statement Thursday that the city council would move ahead with the fee capping regulation. “The laws simply seek to bring fairness to a system that all too often lacks it,” he said.

A spokesperson for Grubhub said in an email to The Verge that the company had “worked hard during the pandemic to support restaurants in New York City and across the country.” But the fee capping would “lead to a reduction of orders for both restaurants and couriers,” according to Grubhub.

Uber didn’t reply to a request for comment. A spokesperson for DoorDash said in a statement emailed to The Verge that the fee cap “will likely harm the very restaurants the City purports to support,” and reduce earnings for its drivers. “Imposing permanent price controls is an unprecedented and dangerous overreach by the government and will limit the options small businesses rely on to compete in an increasingly competitive market.”

That statement is nearly identical to one DoorDash made in July, as it and Grubhub sued San Francisco to block that city from making permanent a 15 percent cap on order fees. That cap took effect in April 2020 as a temporary measure. The San Francisco board of supervisors voted unanimously in June to make the fee cap permanent. SF Mayor London Breed declined to sign it, however, saying she considered it “unnecessarily prescriptive in limiting the business models of the third-party organizations, and oversteps what is necessary for the public good.”

As the companies argued in San Francisco, New York City’s fee cap is likely to raise prices for consumers, they said in the latest complaint. The lawsuit also questions the city imposing a 5 percent cap on marketing services offered by food-delivery companies, when other “marketing and advertising providers, such as Google, Facebook, or Twitter remain unrestricted.”

Some of those “marketing services” came under scrutiny during the pandemic; a report last June found that Grubhub was buying domain names to set up websites that resembled those of local restaurants — despite having no formal relationship with the business — so it could allegedly charge larger commission fees of up to 20 percent.

And as for the “harm” the fee caps could have on drivers, DoorDash came under intense criticism in 2019 when an investigation found it was using its delivery workers’ tips to pay their wages. It later revamped its tipping system.

Update: September 10th 11:20AM ET: Added comment from Grubhub spokesperson

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