27th Aug 2021 14:30
(Alliance News) - Shares in Just Eat Takeaway.com NV were sharply lower on Friday after New York city voted to cap the commission rates that food delivery services could charge.
Just Eat shares were down 5.9% at 6,520.00 pence in London on Friday, the worst performer in the FTSE 100 on Friday.
On Thursday, New York City Council explained: "Third-party food delivery services would obtain a license from the Department of Consumer & Worker Protection every two years, in order to do business in the City.
"These businesses would also be required to comply with previously passed legislation requiring them to share customer order data with restaurants fulfilling food orders, prohibiting them from listing restaurants on their platform without the restaurants' permission, requiring them to list a restaurant's brick-and-mortar telephone number on their platform, and finally prohibiting them from charging restaurants for telephone orders when a transaction did not take place."
The bills limit the amount that companies can charge restaurants to use their platforms to 15% of food orders for delivery services and 5% for advertising and other non-delivery services.
Delivery companies that operate in New York include Just Eat's Grubhub business, Doordash and Uber Eats.
Shares in Uber Technologies Inc, which owns Uber Eats, was down 0.1% in pre-market trade in New York.
By Arvind Bhunjun; [email protected]
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