Fast-delivery apps face NYC crackdown over ‘dark stores,’ worker safety
A trio of bills set to be proposed in the New York City Council would crack down on rapid grocery delivery apps such as Gopuff, Getir and Gorillas by regulating their storefronts and adding safety measures for workers, The Post has learned.
The first bill, from Upper East Side City Council Member Julie Menin, would require the apps’ storefronts — often known as “dark stores” — to be licensed and regulated by the Department of Consumer and Worker Protection. The agency, which Menin herself previously led, would have the authority to revoke licenses for misleading advertising or deceptive trade practices, among other violations.
Two other bills, from downtown Manhattan Council Member Christopher Marte, would limit the weight of the backpacks worn by delivery workers and take aim at promises to delivery goods within specific timeframes.
One of Marte’s bills would require business that promise to deliver within 15 minutes to include disclaimers stating that “delivery is not guaranteed within 15 minutes… for the safety of the public and delivery workers.” The bill would also ban companies from retaliating against workers who fail to make speedy deliveries.
Critics including Marte say that fast delivery apps incentivize employees to break traffic laws, driving electric bikes on sidewalks and endangering pedestrians.
“These stores are operating in the city in a completely unregulated fashion,” Menin told the Post. “The advantage of licensing [gives the city] the power to suspend or revoke the license so they are not operating in this lawless atmosphere.”
The Post first reported on Marte’s plans to regulate delivery times in February. In the following months, several apps including Gorillas dropped references to specific delivery times from their marketing materials — a move that industry watchers said was likely an effort to save on labor costs.
Regarding backpacks, Marte’s bill would fine companies $2,500 for denying a delivery employee future work opportunities for refusing to deliver goods weighing more than 22 pounds in a single trip.
Menin and Marte plan to tout the bills at a City Hall press conference on Thursday morning alongside activists from the Los Deliveristas Unidos — a coalition of New York City delivery workers — as well as members of the Bodega and Small Business Group and the Asian American Federation.
However, the current economic downturn may bring the fast delivery industry to heel before the City Council has a chance to pass any legislation.
Investors are pulling out of the industry amid soaring interest rates and a stock market slump, hanging many delivery companies out to dry after they expanded rapidly during the pandemic.
One of the largest fast delivery companies, Jokr, closed its Big Apple and Boston operations in June. Two other fast delivery apps, Buyk and Fridge No More, both shut down in March, as first reported by The Post.
And Gopuff, the largest of the fast delivery apps, announced it was laying off 10% of its staff on Tuesday. The company had already laid off about 3% of its workforce earlier this year.
Getir, meanwhile, axed 14% of its global workforce in May.
Getir spokesman Nico Probst said the company “welcomes regulations around the protection of delivery riders and microfulfillment centers,” and said the company will continue to work with government officials to comply with local laws.
“Getir is also an industry leader in protecting delivery riders by employing them as W-2 workers and providing them with health benefits,” Probst added. “We provide best in class safety training and high-quality safety gear.”
