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Chicago requiring itemized cost breakdowns from food delivery apps
Chicago's mayor has announced new regulations on food delivery apps such as Uber Eats and Grubhub amid criticism over the apps' impact on the restaurant industry during the coronavirus pandemic.
NBC 5 Chicago reported that Mayor Lori Lightfoot's (D) administration will require such companies operating in the city to provide full itemized receipts for customers detailing every part of their orders, which will be available both before and after an order is submitted.
Lightfoot said in a statement obtained by the news channel that the regulation was an effort to ensure that apps were conducting fair business practices.
"Amid the COVID-19 crisis, our restaurants are relying on third-party delivery services more than ever so that they can keep their doors open and stay afloat," said the mayor. "By providing customers with more transparency when they use these delivery services, we can further ensure not only fair business practices for our restaurants but also maintain the innovation that is essential to this industry."
Grubhub and other food delivery services have faced sharp criticism from restaurant owners during the coronavirus crisis due to the often high rates of commissions charged by the companies per order made through their apps. Restaurant owners argue that the companies are cutting in to already diminished profits and endangering the futures of restaurants they serve.
A spokesperson for Grubhub told NBC 4 that restaurant owners only pay a commission for sales drawn to their businesses with Grubhub's help, and bashed the mayor's regulation.
"We support policy and legislation that help restaurants serve their communities, and a path to reopening those businesses must be the focus," the Grubhub spokesperson said. "These arbitrary disclosure rules will do exactly the opposite of their intent by causing confusion to consumers. These efforts by policymakers risk discouraging people from enjoying restaurant meals safely at home, and hurt our efforts to support restaurants."