In response to Governor Newsom signing Assembly Bill 2149 into law Postmates along with other concerned parties, Dine Black LA and the Latino Restaurant Association has released the following statement:
SAN FRANCISCO, Sept. 25, 2020 /PRNewswire/ --
Postmates
"Upon signing Assembly Bill 2149, Governor Newsom has cut off a lifeline for 40,000 local California restaurants which have relied in part on Postmates to keep their access to delivery services during the Covid-19 pandemic. Upending access to services for thousands of local restaurants; cutting off access to $100 million in revenue for local business realized in 2020, and wiping out millions in sales tax for the state's coffers, is a classic example of how well-intentioned lawmaking can go terribly wrong. While Postmates almost entirely works with merchants in formal agreements, California businesses have also been able to test out delivery platforms during a pandemic at zero cost to restaurants, before formalizing contracts, a crucial benefit during a time of so much uncertainty where businesses need to quickly generate sales revenue to stay open."
Dine Black LA
"The Black Restaurant Coalition of Los Angeles considers this a time to call for a "state of emergency" while many black-owned restaurants are struggling daily to survive the pandemic crisis. Delivery has become the new normal for customers and food delivery platforms have made this possible for many of our restaurant owners. The signing of Assembly Bill 2149 threatens the sustainability of restaurant owners who are faced daily with the hard decision of making payroll and supporting their families' needs."
Latino Restaurant Association
Assembly Bill 2149 is bad for restaurants throughout the state of California. We are doing everything we can to keep Latino owned restaurant's doors open. The last thing we expect is the Governor to reduce our access to vital tech platforms. By forcing restaurants into contracts with platforms they were using at their own discretion, it not only pulls the plug on access to these critical services, it also increases costs for these critical services in a time when restaurants need more options not less, and more flexibility instead of more restrictions. We are very disappointed that with a stroke of a pen the Governor has removed access to much needed tech platforms for thousands of California's Latino owned businesses.
In preparations to comply with the new law, we will be forced to reduce or disrupt service to our non-partner starting October 1, 2020, meaning that some owners will have less than 1 week to find delivery solutions.
Any business that has benefited from zero-cost revenue generation through the Postmates platform can submit a removal request through our Merchant Support Portal and be removed from our marketplace within 72-96 hours.
About Postmates
Postmates is a leader in delivering your favorite restaurants and a whole lot more on-demand. The platform gives customers access to the most selection of merchants in the US with more than 600,000 restaurants and retailers available for delivery and pickup, many of which are exclusive to Postmates. The market leader in Los Angeles and markets across the southwest, Postmates covers 80% of US households, across all 50 states. Customers can get free delivery on all merchants by joining Postmates Unlimited, the industry's first subscription service. Learn more or start a delivery by downloading the app or visiting www.postmates.com.
SOURCE Postmates
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