Just Eat slumps after NYC approves cap for food delivery apps
Just Eat Takeaway shares slumped on Friday after the New York City Council approved legislation to cap commissions delivery apps can charge restaurants.
FTSE 100
8,174.26
13:15 05/11/24
FTSE 250
20,440.83
13:15 05/11/24
FTSE 350
4,505.85
13:15 05/11/24
FTSE All-Share
4,463.30
13:15 05/11/24
Grubhub Inc.
$59.89
11:00 16/08/21
Just Eat Takeaway.Com N.V. (CDI)
864.00p
13:15 05/11/24
Software & Computer Services
2,412.23
13:15 05/11/24
The new bill, which was approved on Thursday, limits the amount that delivery apps such as Uber Eats, DoorDash and GrubHub - which is owned by Just Eat Takeaway - can charge to 15% of food orders. The new measure will also stop food delivery companies from charging more than 5% for marketing.
The changes come after restaurants complained about commissions of up 30%.
The bill was proposed by Councilman Francisco Moya, a Queens Democrat.
He said on Thursday: "By limiting, without expiration, the fees charged to restaurants by third-party food delivery services, we are ensuring that mom-and-pop shops have a real opportunity to recover and thrive."
GrubHug said in a statement: "This permanent price control is flagrantly unconstitutional and will hurt local restaurants, delivery workers and diners across NYC. We will vigorously fight this illegal action."
At 1125 BST, Just Eat shares were down 4.4% at 6,625p.