Jersey City mayor caps delivery app fees at 10%

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By 1010 WINS

JERSEY CITY, N.J (1010 WINS) — Jersey City Mayor Steven Fulop and the city council passed an ordinance this week to put a cap on what third-party delivery apps like Grubhub and Door Dash can charge during states of emergency.

Mayor Fulop signed an executive order Thursday to help local restaurant owners that continued to be charged large fees.

The city council joined other cities across the nations and declared a 10 percent cap on those commission fees during a state of emergency.

Third-party delivery apps have said the caps will shift the delivery cost back on the small business.

A spokesperson for Grubhub sent PIX11 a statement that called the legislation “the wrong thing to do," adding that the cap “will lower order volume to locally-owned restaurants, increase costs — and headaches for — small business owners and raise costs to customers."