Shares of Grubhub (NYSE: GRUB) have fallen today, down by 8% as of 12:20 p.m. EDT, after the New York City Council late yesterday approved a measure that caps the fees that online food ordering and delivery platforms can collect. New York City is one of the biggest markets for food delivery apps.
The New York City Council voted yesterday on an emergency bill that is designed to help small businesses and local restaurants during the COVID-19 pandemic. The public health crisis has forced many restaurants to close dining rooms while trying to compensate with online delivery orders, but those tech companies extract steep commissions that can reach as high as 40%.
Image source: GrubHub.
Source Fool.com