Forbes / Claudia Alarcón / May 25, 2020
As restaurants struggle to stay afloat during the coronavirus pandemic, many have turned to delivery apps to serve customers until it is safe to return to dine-in service. But the fees these companies charge have left restaurant owners reeling.
City councils in New York, Los Angeles, San Francisco, Seattle and Washington, D.C., have recently voted to cap delivery companies’ fees at 15% of the price of each order. But Grubhub, which has recently been approached by Uber with a takeover offer, opposes the measures.
New Mexico based restaurateur Erin Wade, owner of Vinaigrette, has scoffed at third party delivery services for years, and has personally protested them because of their unfair business model. Last month, Wade penned a powerful open letter to GrubHub's CEO, calling out their years of shady behavior towards small independently owned restaurants.