New Law in California Will Deliver More Regulation for Food Delivery Platforms

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December 31, 2020
Food delivery platforms such as DoorDash, Uber Eats, Grubhub and Postmates have seen an increase in demand during the coronavirus pandemic. But when we turn the calendar to 2021, the rules will change in California. The "Fair Food Delivery Act of 2020' will go into effect January 1, which will require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders. Following an article on the new law that appeared in the Wall Street Journal on December 26, the stock for food-delivery platforms, particularly DoorDash, whose shares dipped nearly 7% by the close of the following session. Laura Forman, Tech Columnist at the Wall Street Journal, who wrote that story, breaks down this law for us and explains why it is so significant for both delivery platforms and restaurants.  
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