> In San Francisco, the mayor, London Breed, instituted a 15 percent cap on commission fees, a move that prompted Uber to suspend deliveries to Treasure Island, which sits in the bay separating San Francisco and nearby Oakland and is home to a number of low-income residents.
> In Jersey City, Uber reacted with a $3 surcharge to consumers after the city’s mayor imposed a 10 percent commission cap. In Chicago, an order due to come into force later this month will not force a cap but instead demand transparency on fees so customers have a clear picture of how much of their payment goes to restaurants.
> New York City is poised to move next: a bill seeking to impose a 20 percent cap is on the table this week, supported by the mayor, Bill de Blasio, and gaining momentum following news of the possible Grubhub deal.
It will be interesting to see how all of these different approaches play out. Are the caps governed by the restaurant location or the customer location? Or either/both?
Will Uber push back at all? It seems some sort of regulation in this space is inevitable so at a certain point I expect Uber will start to lobby for uniformity rather than a patchwork of rules that differ by zip code. I can imagine the cost of compliance quickly getting out of hand.
1 comment
[ 2.3 ms ] story [ 16.0 ms ] thread> In Jersey City, Uber reacted with a $3 surcharge to consumers after the city’s mayor imposed a 10 percent commission cap. In Chicago, an order due to come into force later this month will not force a cap but instead demand transparency on fees so customers have a clear picture of how much of their payment goes to restaurants.
> New York City is poised to move next: a bill seeking to impose a 20 percent cap is on the table this week, supported by the mayor, Bill de Blasio, and gaining momentum following news of the possible Grubhub deal.
It will be interesting to see how all of these different approaches play out. Are the caps governed by the restaurant location or the customer location? Or either/both?
Will Uber push back at all? It seems some sort of regulation in this space is inevitable so at a certain point I expect Uber will start to lobby for uniformity rather than a patchwork of rules that differ by zip code. I can imagine the cost of compliance quickly getting out of hand.