Shares in DoorDash and Grubhub fall, amid New York clampdown on delivery apps

New York has introduced widespread legislation to help protect delivery workers' rights as the spotlight on the welfare of couriers grows amid the increased popularity of delivery apps.

Shares in Grubhub and DoorDash both fell this week, in the week that New York passed legislation to heighten regulation on food delivery apps and boost delivery workers' rights.

Shares in DoorDash were down 11.1 per cent to $220.52 while shares in Grubhub were down 10.7 per cent to $15.40.

The new legislation will set minimum pay for couriers and other wide-ranging measures.

These include delivery apps now being required to pay couriers at least once a week, offer payments that don’t necessitate having a bank account and ensure couriers receive full tips.

Workers will also be granted access to restaurant bathrooms and the new measures will also allow workers to set limits on their routes.

New York, home to the biggest food delivery market in the US, is the first city in the US to pass such wholesale legislation regulating the delivery industry.

Other US cities have undertaken moves to curb food delivery apps, but not gone as far as the sweeping rules in New York.

The move comes as the spotlight increasingly focuses on the working practices of food delivery apps, as they grow in popularity.

The recent images of delivery workers working through Hurricane Ida’s torrential storms prompted a backlash in some quarters.

Delivery firms have also come under pressure over issues like listing restaurants on apps without their permission while Just Eat Takeaway, which owns Grubhub, and DoorDash, have been sued by Chicago over “deceptive” fees.

The lawsuit is similar to longstanding claims from restaurant owners that the platforms advertise delivery services for their businesses without their approval and cover up lower prices that restaurants offer directly to customers outside of the platforms.

Meanwhile, shares in Philadelphia-based AgTech firm AgroFresh Solutions were up 2.3 per cent to $2.19.amid the news that it would be revealing its latest innovations at a trade show in Madrid in October.

Innovations on show include SmartCitrust, a platform geared towards the citrus industry to maintain freshness and cut food loss and waste.

“We are very excited to feature our portfolio of solutions, which have significantly diversified our offerings and allow AgroFresh to put its expertise to work for even more crops and customers,” said Julian Herraiz, general manager for AgroFresh Fruit Protection.

“This presentation of our solutions at Fruit Attraction represent another step forward in AgroFresh’s decades-long commitment to providing the most innovative solutions, reducing food loss/food waste and delivering superior eating experiences to consumers.”

Lastly, shares in Blue Apron continue to climb, after it filed its registration statement with the SEC for its rights offering.

This week, shares in Blue Apron were up 26 per cent to $6.34.