New Iowa Law Regulates Food Delivery Apps

Statewide Iowa — A new state law is establishing new restrictions on food delivery apps like Uber Eats, Grubhub and DoorDash. The companies must have an agreement with a restaurant, bar or diner before their drivers can deliver food and beverages from that business. Jessica Dunker, president and CEO of the Iowa Restaurant Association, says that will hopefully stop what the restaurant industry calls pirating.

The law establishes food safety standards for delivery drivers, too.

Perhaps most basic of all: the food delivery companies will face fines if drivers are caught eating some of the food they’re supposed to be delivering.

Dunker says food third party delivery services didn’t really help restaurants during the depths of the pandemic and restaurants aren’t making money on food order through a delivery app. Restaurants are sometimes charged commissions of up to 30 percent on food delivery orders.

Dunker made her comments during a recent appearance on “Iowa Press” on Iowa PBS. Some major cities have started regulating what food delivery services may charge restaurants. The companies say their apps are a marketing opportunity, giving restaurants another platform to reach new customers and find new revenue.

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