NYC Food Delivery Regulation
New York City has created the “nation’s first city sustainable delivery department [to] regulate the surge of delivery drivers’ bikes and mopeds to promote safety and eco-friendly streets,” writes Nation’s Restaurant News (NRN) in a recent article. The details are still being sorted, but New York City mayor Eric Adams did reveal that the new watchdog agency, the Department of Sustainable Delivery, will “address the issues raised by the surge of delivery drivers on bikes and mopeds across the city in part by overseeing inspections and registration for e-bike drivers.”
As the first government entity created to manage a surge of delivery services, primarily on public e-bikes and scooters, the main goal is safety, both for the delivery workers and citizens around their delivery routes.
“‘New Yorkers have been clear: We welcome the future of transit and mobility, but we cannot have mopeds speeding down our sidewalks, delivery apps exploiting workers, or chaos on our streets,’ Adams said in a statement. ‘Our streets — and how they’re used — have changed, and we’re changing with them. The Department of Sustainable Delivery will be a first-in-the-nation way to let us retake the reins of our streets and ensure that the next generation of mobility innovation works for our workers, our neighbors, and our city, as we continue to deliver on our vision to protect public safety, rebuild our economy, and make this city more livable for working-class New Yorkers.’”
The Department will also manage safety concerns related to the transport itself, for example, “ the danger of lithium-ion batteries, which are often used to power electric bikes and scooters and can cause explosions and fires if not used properly,” says NRN, citing a CBS news report of 18 battery explosion deaths in NYC in 2023.
Beyond safety regulation, the development of such an oversight organization provides crucial information for restaurant owners and operators: delivery services are not going away, even in smaller cities than New York. According to Statistica, “It is expected to exhibit a compound annual growth rate (CAGR 2024-2028) of 10.06%, resulting in a projected market volume of US$1.79tn by 2028. In the Grocery Delivery market, a revenue growth of 20.3% is anticipated in 2025.”
When entire government departments, such as the Department of Sustainable Delivery, are being created to manage sustainable growth and safety, business owners can be assured that the concept is here to stay—and will only grow in expectation. Richard Weil, owner and principal of National Restaurant Consultants, is a past Chairman of the Colorado Restaurant Association remains an active member. He also stays abreast of national trends affecting the industry with alerts from the National Restaurant Association.“The efforts of a large municipality like NYC often can set trends in creating legislation and mandates to the food service and hospitality industry. Compliance is important, as is understanding the root cause of legislation so as not to create unnecessary regulations. While the issues in NYC are unique to NYC, our industry should be aware of potential government overreach as well.”
Whether or not your restaurant business has incorporated a delivery system, it is important to pay attention to the trends and new regulations. Our restaurant consultants keep apprised of changing legislation and developments in both the private and public sectors so that we can guide your food delivery program in development and growth.