Statement from Councilman DeFusco, Vice President Giattino on Hoboken’s Third Party Delivery Cap Ordinance

HOBOKEN, N.J. — On Wednesday night, the City Council passed an ordinance that caps the commission fees third party delivery companies can collect from restaurants through the remainder of the COVID-19 State of Emergency. The ordinance, sponsored by Councilman Mike DeFusco and Council Vice President Jen Giattino, was initially proposed as part of a pro-business legislation package introduced during the onset of the pandemic to help local mom and pop shops, restaurants and other eateries stay afloat during the global health crisis.

The third party delivery cap ordinance was introduced at the May 6, 2020 Council meeting and passed on first reading, despite the administration’s objection to this common sense legislation. In the coming week after this ordinance single handedly began the conversation of regulating delivery commissions in municipalities throughout New Jersey, a statewide third party delivery cap was put in place.

“Restaurants and cafes have struggled to stay afloat since the onset of the pandemic, and now more than ever they need all available resources to keep their doors open” said Councilman Mike DeFusco. “This is an important piece of legislation that the administration should have acted on when it was first proposed nine months ago instead of taking a backseat on an issue that would have benefited the very businesses that make our city so special. I’m glad the City Council finally adopted this law and that Mayor Bhalla is supportive of these fair regulations that give the hospitality industry a fighting chance, especially during these cold months.”

“Hoboken’s restaurants, cafes and eateries contribute greatly to the overall charm of our city and their absence following the pandemic would greatly impact our community,” said Council Vice President Jen Giattino. “Regulating the commission fees app-based delivery companies can charge small businesses will help them generate additional revenue to pay their bills, their employees and continue serving the residents of Hoboken for years to come.”

Hoboken’s third party delivery cap is intended to reinstate the State of New Jersey’s previous regulations that were rescinded when indoor dining was permitted to resume in September. The law permits delivery services to collect no more than 15% of an order’s value from restaurants, or 5% when the order is delivered by the business.