City limits fees of food-delivery ‘leeches’

The New York City Council compared food ordering apps like Grubhub and Uber Eats to blood-sucking parasites on Wednesday before passing emergency legislation aimed at helping struggling restaurants lower their delivery costs during the pandemic.

During the state of emergency caused by the coronavirus, food ordering and delivery apps will not be allowed to charge restaurants more than 15 percent in delivery fees and 5 percent for any other takeout orders fees.

The city council will also ban these apps from charging restaurants for telephone calls that never resulted in a food order — a practice Grubhub came under fire for last year following exclusive reporting by The Post.

During a hearing that preceded the vote on Wednesday, Councilman Francisco Moya, a Democrat who represents Jackson Heights and Corona, compared Grubhbub to a “leech” that is “sucking the life and blood out of restaurants.”

Food ordering and delivery apps like Grubhub can charge restaurants commissions that can range from 12 to 40 percent of a single order.

Grubhub, which is reportedly an acquisition target by Uber, has threatened legal action against the City Council over the legislation, which it has slammed as an “overstep.”

Council Speaker Corey Johnson discounted such threats. “We do believe we have the legal authority,” he said. “We’ve spent a lot of time looking at these issues. So I believe we’re on solid legal grounds and I’m not concerned about this challenge.”