New California Law Raptures Thousands of Restaurants From Postmates, DoorDash, and Grubhub
A California law that took effect on January 1 has prompted the removal of tens of thousands of restaurants from food delivery apps like SF-based Uber Eats, DoorDash, Postmates, and Caviar. The law, which was approved last fall, requires apps to offer delivery only from restaurants with which they have a direct partnership and to pull listings from any restaurants with which they do not have a current contract.
The legislation was born out of a scandal that began in the Bay Area: In January 2020, Pim Techamuanvivit, the owner of San Francisco’s Michelin-starred Thai restaurant Kin Khao, was stunned to discover that delivery services including GrubHub, Seamless, DoorDash. and Yelp’s delivery platform (also GrubHub, as it purchased Yelp’s Eat 24, then shut it down) were offering food purportedly from her menu for delivery without her permission.
Its final language states that to list a restaurant on its platform, food delivery apps online company must have a contract with the restaurant “expressly authorizing the food delivery platform to take orders and deliver meals prepared by the food facility.”