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California Introduces Law To Stop Delivery Apps Screwing Over Restaurants

On Tuesday, California State Assemblywoman Lorena Gonzalez (D-San Diego) introduced legislation to protect restaurants from being exploited by food delivery platforms that add restaurants without permission and withhold customer data. Motherboard reports: For years now, companies such as DoorDash, GrubHub, Postmates, and Uber Eats have engaged in shady practices to add more restaurants to their platforms, extract more fees from restaurants and customers, and defeat rival platforms. One consequence of this arrangement is that delivery apps do not share information with restaurants about where customers are located or how to get their feedback. According to a press release about the proposed legislation, this means restaurants have little control over the customer experience and the data may even be used by platforms to drive customers to so-called "host kitchens" that they operate.

Assembly Bill 2149 (the Fair Food Delivery Act) would require platforms to not only share customer information with restaurants but reach an agreement with restaurants before adding them onto the food delivery app. The hope with AB 2149 is that by giving restaurants the ability to opt-out of being added to the platforms (or get the customer data if they opt-in), there will be less of this exploitative extraction directed at restaurants. As for protecting workers from exploitation, Gonzalez also introduced bill AB 5, which went into effect this year and promises to reclassify gig workers (including delivery drivers) as employees owed a minimum wage, benefits, and dignity that these platforms deny them.


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