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FreshDirect quietly slips in extra fee to customers in NYC congestion pricing zone

January 9, 2025
in Business
Reading Time: 2 mins read
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FreshDirect quietly slips in extra fee to customers in NYC congestion pricing zone
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Eagle-eyed FreshDirect customers in Manhattan’s congestion pricing zone may have noticed an extra fee on their bill — after the online grocer quietly slipped in a surcharge to offset paying the hated toll, The Post has learned.

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FreshDirect, whose colorful trucks are headquartered in the Bronx, tacked on an additional 50 cents for all deliveries below 60th Street after the controversial new levy went into effect Sunday.

The company had not notified customers of the added hit before the toll was imposed, but fessed up to the additional charge when contacted by The Post.

FreshDirect is charging customers 50 cents to defray the cost of congestion pricing, the company said. Christopher Sadowski
Neighborhoods closest to the 60th Street tolling zone are expected to be upended with nightmarish gridlock.

“While we have absorbed most of the operational costs associated with the implementation of congestion pricing, we will now be adding a $0.50 ‘congestion pricing’ fee to our residential deliveries within the affected area,” a spokesperson said in a statement.

“This small fee will enable us to continue delivering the quality and convenience our customers expect from FreshDirect while adapting to the evolving landscape of our service area.”

FreshDirect does not flag the separate charge on the check-out page. The extra 50 cents is added to the “fuel surcharge” item at check out, which now also includes “congestion pricing,” the spokesperson said.

Delivery trucks must pay $14.40 when they cross below 60th Street during peak hours.

FreshDirect is not alone in tacking on a congestion pricing fee. Other businesses that have done so include CompuVoip, a phone and data service company that contracts with the city, catering companies and funeral homes, as The Post has reported.

By contrast, food delivery company Baldor, which delivers to restaurants and other commercial businesses, told The Post that it does not plan to tack on an extra fee to its customers.

Bronx-based FreshDirect is filling up its larger trucks and reducing the number of trips its smaller vans and cars make below 60th St. Christopher Sadowski

“Our plan is to offset the cost internally and to optimize,” our truck routes, according to Seth Gottlieb, senior vice president of logistics. “We are trying to stay above 60th Street and search for opportunities for our customers to take deliveries overnight.”

Baldor estimates that congestion pricing will cost it up to $500,000 a year under the current plan.

Congestion pricing went into effect on Jan. 6 at midnight. Michael Nagle

FreshDirect said it’s trying to mitigate its costs by piling more orders into its larger trucks and reducing the number of trips vans and cars — which are charged $9 — make below 60th Street, the spokesperson said.

FreshDirect was acquired in 2023 by Turkey-based Getir – a fast grocery delivery service that is experiencing financial difficulties.

The parent company is facing a slew of lawsuits from New York City landlords demanding back rent, as The Post reported.

Credit: Source link

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